WA Senate, House contemplate gas tax hike to address transportation budget shortfall

The Washington state legislature is actively discussing proposals to increase gas taxes as a solution to a transportation budget shortfall. The Senate's plan includes a six-cent tax hike on fuel, set to be implemented this summer, alongside increased fees for electric vehicles. According to a spokesperson, current electric vehicle fees will rise from $225 to $275, and hybrid fees will increase from $75 to $100. In contrast, the House is considering a more aggressive nine-cent increase that would be indexed to inflation starting in fiscal year 2027. Both proposals are scheduled to take effect on July 1, emphasizing the urgency to address funding gaps.

Washington currently has the third-highest gas tax in the nation, following California and Pennsylvania, making any increase significant. As gas prices continue to rise, with the average currently at $4. 11 per gallon, these proposed tax hikes are drawing attention from residents and lawmakers alike. The last gas tax increase occurred in 2016, highlighting the long-standing challenges in funding transportation infrastructure in the state.