Transportation

SB 5801 amends Washington's fuel tax structure to generate revenue for transportation infrastructure. Starting July 1, 2025, it adds a 6-cent-per-gallon tax on regular fuel and a 3-cent tax on special fuel (with an additional 3-cent tax on special fuel beginning July 1, 2027). The bill also mandates annual 2% increases to regular fuel tax rates starting July 1, 2026, and to special fuel rates starting July 1, 2028. These changes directly affect fuel licensees (businesses selling fuel) and will increase costs for consumers purchasing gasoline or special fuels. The legislation repeals outdated tax provisions and establishes new funding mechanisms to support state transportation system development.

Senate Bill 5802 rebalances how state funds are transferred to support transportation and public works projects. The bill amends existing laws to modify the amounts and durations of transfers from the state's general fund and the public works assistance account. Specifically, it adjusts financial contributions to the connecting Washington account, the move ahead WA flexible account, and the Tacoma Narrows toll bridge account. These changes generally reduce or shorten the periods for these transfers, directly affecting the financial allocations for various state transportation initiatives.