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Washington state may charge car owners based on their vehicle's gas mileage

  • Washington state lawmakers are considering increasing the gas tax and electric vehicle registration fees, among others, to finance the proposed 2025-2027 transportation budget.
  • With the current gas tax at 49.4 cents, the Legislature has already raised it seven times since 2003 from an initial 23 cents.
  • House Bill 2043, sponsored by Rep. Jake Fey, proposes a 9-cent per gallon gas tax increase starting in July, an increase in the state retail sales and use tax rate applied to motor vehicles from 0.3% to 1%, additional taxes on vehicles exceeding $50,000, and ties the $75 transportation electrification registration fee to inflation.
  • Lobbyist Greg Hannon projected a 64-cent gas tax by 2031 if the proposal is adopted, while Carl Schroeder with the Washington Association of Cities supports tying fees and taxes to inflation to maintain purchasing power, and Rep. Andrew Barkis prefers using sales tax from car purchases and Climate Commitment Act funds for roads.
  • As Washington roads have been paid for through gas taxes for over 100 years, and with more fuel-efficient vehicles reducing gas tax revenue, Fey proposes a new highway fee based on mileage, similar to Virginia's system, but critics, like Curtis King and Andrew Barkis, express concerns about raising taxes and privacy, arguing that it comes at a bad time and could burden Washington residents.
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ITEP broke the news in on Wednesday, March 26, 2025.
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