Gas tax increases key to fueling Washington transportation budgets
Washington state lawmakers are presenting gas tax increase proposals to tackle a $1 billion shortfall in the transportation budget. The Senate's plan suggests a 6-cent hike, raising the gas tax to 55. 4 cents per gallon, while the House proposes a more substantial 9-cent increase. Both hikes are set to take effect on July 1, with projected revenues of $1. 5 billion and $1.
8 billion, respectively, over the next six years. Lawmakers like Senate Transportation Committee Chair Marko Liias stress the necessity of these increases to prevent delays in road projects and maintain an adequate transportation system. The proposals also aim to address rising construction costs and declining gas tax collections amid a shift towards more fuel-efficient and electric vehicles. Additional funding measures include increased fees on electric vehicle registrations and a luxury vehicle tax, as well as a proposed transfer of sales tax revenue to transportation. However, the Senate's plan includes 13 furlough days for state transportation workers, indicating ongoing financial constraints.
As Washington navigates these budget challenges, the implications of these tax increases could significantly impact the state's infrastructure development and maintenance.