WA Legislature approves gas tax increase

The Washington Legislature approved a transportation revenue package that features a 6-cent increase in the state gas tax, the first hike in nearly a decade. The gas tax will rise from 49. 4 cents to 55. 4 cents per gallon, with subsequent annual increases of 2% to keep pace with inflation. Additional tax increases on diesel, vehicle-related fees, and a new 8% tax on luxury vehicle sales are projected to generate $3.

2 billion over six years. Lawmakers are addressing a $1 billion shortfall in the transportation budget, exacerbated by rising construction costs and declining gas tax revenues. Senate Transportation Committee Chair Marko Liias stated the funds will go towards maintaining roads and improving safety. While Democrats support the package, Republicans contend that the tax burden on working-class residents is excessive. The approved measures also include a temporary increase in the rental car tax and higher fees for vehicle registrations and titles.

This revenue package aims to ensure that Washington’s transportation infrastructure meets the needs of its residents.