Higher gas tax takes effect July 1 in Washington state

Washington state's gas tax will increase by 6 cents per gallon on July 1, raising the total tax to 55. 4 cents. This hike, approved earlier this year, aims to generate approximately $1. 4 billion for highway projects over the next six years. With wholesale fuel prices decreasing, residents might not experience a dramatic price spike at the pump, but they will see a minor increase.

The average gas price in Washington is already $4. 45 per gallon, significantly higher than the national average of $3. 21. Lawmakers also voted to implement an automatic 2% increase in the gas tax starting next July, allowing for consistent revenue growth without frequent votes. This move is part of a bipartisan effort to enhance critical infrastructure, including roads and bridges.

However, the funds will primarily shore up financing for previously approved megaprojects that have exceeded budget estimates. State officials acknowledge the challenge of declining gas tax revenues as vehicles become increasingly fuel-efficient and are considering alternative funding strategies.