SB 5726 establishes a per-mile road usage fee to replace declining fuel tax revenue as vehicles become more fuel-efficient. It creates a voluntary program for electric/hybrid vehicles (starting July 2027) and mandates the fee for all vehicles by 2035, phased in based on fuel economy (e.g., all EVs required starting 2029, internal combustion engines with ≥40 MPG required starting 2031). The fee replaces existing registration and electrification fees for enrolled vehicles, maintaining current revenue levels for road maintenance and transportation systems. The bill explicitly requires privacy protections for location data collected under the program.
HB 1997 reduces Washington State's statewide property tax revenue by 10% for calendar years 2026 through 2028, directly affecting all property taxpayers across the state. It modifies existing tax laws to set new levy limits for state property taxes, requiring a 10% reduction from the "highest lawful levy" amounts for those years. The bill explicitly prohibits shifting the tax burden to other taxpayers or revenue sources, maintaining the same total tax revenue level without increasing other taxes. This change applies only to state-level property taxes for common schools and related programs, not local property taxes. The measure is limited to the 2026-2028 timeframe, with tax levies reverting to standard rules after 2028.
HB 1921 establishes a mileage-based road usage fee system to replace declining fuel tax revenue, directly affecting vehicle owners - starting with electric/hybrid vehicles in 2027 and phasing in conventional vehicles based on fuel efficiency by 2035. The bill creates a voluntary program for EVs/hybrids (2027-2029) and a mandatory program for increasingly efficient conventional vehicles (starting 2029), replacing existing registration fees like those in RCW 46.17.323/324. Fees are calculated per mile driven, with privacy protections for location data emphasized as a core requirement. The phased approach aims to maintain current transportation funding levels while adapting to fuel-efficient vehicle adoption.
HB 1786 amends Washington state law to allow local governments to use tax increment financing (TIF) revenues for public safety facilities. Specifically, it adds "public safety facilities" (defined as police, fire, emergency medical, or similar services infrastructure) to the list of eligible public improvements under TIF programs. This change directly affects cities, counties, and other local governments using TIF to fund infrastructure projects, enabling them to allocate TIF revenues toward facilities like fire stations or police buildings. The bill modifies existing definitions in RCW 39.89.020 (section 8(a)(ix)) to include these facilities as allowable uses, without altering TIF revenue collection or distribution mechanisms.
HB 1986 would impose a new 5.9% tax on motor vehicle sales to businesses that use the vehicles for retail car rentals, directly affecting car rental companies purchasing vehicles for their fleets. This tax applies specifically to vehicles bought for rental operations (not individual car sales) and must be paid by the rental company at the time of purchase. Revenue from this tax will fund the state’s multimodal transportation account. The bill amends existing tax law to create this targeted tax, with the rate applying to sales occurring on or after October 1, 2025.
HB 1083 changes how Washington's aircraft fuel tax revenue is split between airport projects and the state general fund. Starting July 2025, 0.5% of the tax revenue (increasing to 1% after 2027) goes to airport projects via the aeronautics account, while the remaining 6.5% minus that amount flows to the general fund. It requires the transportation department to track and annually report on funded airport projects, including state grants, federal matching funds, and local contributions. This directly affects airports receiving project funding and state budget allocations through these revenue changes.
This bill amends Washington State's business tax code, establishing new tax rates for various sectors: 0.275% for international investment management, 1.8% for most business activities (with a reduced 1.5% rate for small businesses and hospitals), and 0.9% for aerospace product development. It requires 16.67% of revenue from the 1.8% tax rate to be deposited into a workforce education investment account (RCW 43.79.195), which funds job training and workforce development programs. The bill does not increase funding for higher education; instead, it redirects business tax revenue to workforce education initiatives. It takes effect October 1, 2025.
