Washington Approves $3.2B Gas Tax Hike, Rising to 55.4 Cents

Washington state lawmakers have approved a transportation revenue package that includes the state's first gas tax increase in nearly a decade, raising the tax by 6 cents per gallon in July and adding a 2% annual increase thereafter. The package is expected to generate $3.2 billion over six years to address an $8 billion transportation budget shortfall, with additional revenue coming from higher diesel taxes, increased vehicle registration and title fees, and new taxes on luxury vehicles and non-commercial aircraft. Local business owners and residents have expressed concerns about the impact on families and small businesses, particularly those near state borders where customers might seek cheaper fuel. Critics argue the legislature is insensitive to financial pressures on working families, while supporters contend the increases are necessary to maintain and improve the state's deteriorating infrastructure. The legislation awaits Governor Bob Ferguson's signature. Public reactions reflect a mix of frustration over rising costs and acknowledgment of the need for better road maintenance.