Higher gas tax takes effect July 1 in Washington state
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Rebecca Zisser/Axios
Washington state's gas tax will rise by 6 cents per gallon on Tuesday, after state lawmakers voted to approve the increase earlier this year.
Why it matters: Because wholesale fuel prices are falling, Washingtonians may not wake up to a 6-cent spike at the pump, but they may "notice a little bit of an increase," Patrick De Haan, head of petroleum analysis at GasBuddy, told Axios.
By the numbers: The hike on July 1 will raise Washington's gas tax from 49.4 cents per gallon to 55.4 cents per gallon.
- The increase, along with changes to diesel taxes, will generate about $1.4 billion in new revenue for state highway projects over the next six years.
- It's part of a larger $3.2 billion transportation tax package lawmakers approved in April.
The big picture: Washingtonians already pay more for gas than people in most other states.
- While AAA pegged the nationwide average price per gallon at $3.21 as of Friday, a gallon in Washington averaged about $4.45.
What they're saying: The higher tax is part of a bipartisan deal "to invest in critical infrastructure that all Washingtonians count on — roads, bridges and ferries," state Sen. Marko Liias (D-Edmonds), who chairs the Senate Transportation Committee, told Axios.
Yes, but: The money isn't bankrolling a bunch of new projects, state Rep. Jake Fey (D-Tacoma), chair of the House Transportation Committee, told Axios.
- Instead, it's helping shore up funding for megaprojects the state has already approved, several of which have recently come in over budget by hundreds of millions of dollars.
- "We're getting killed by inflation," Fey said Friday.
The fine print: Washington lawmakers also voted to make the state's gas tax increase by 2% automatically each year starting next July, a step they haven't taken before.
Between the lines: De Haan said several other states have adopted similar automatic gas tax increases, typically indexed to inflation.
- Automatic increases allow legislators to boost revenue without repeatedly voting on controversial gas tax hikes, he said.
What's next: Lawmakers still face the broader challenge of declining gas tax revenues as vehicles become more fuel-efficient.
- Fey said the state will need to explore alternative funding strategies, such as implementing a highway use charge, like in Virginia's system.