OLYMPIA, Wash. — Washington state lawmakers heard passionate testimony Tuesday about the bill that would raise the gas tax and create other taxes across the state.
Senate Bill 5801 would raise the $0.494 per gallon gas tax by $0.06 per gallon next year, then ‘index’ a 2% increase each year in an effort to keep up with inflation. The gas tax last increased in 2016, according to the Federal Transportation Commission. It’s estimated to generate $3.205 billion over six years.
“This would be a great opportunity to jump in on the preservation side. This will save tens of millions of dollars each year if we can get on [road projects] and get them going before they get worse,” testified Billy Wallace with the Washington and Northern Idaho District Council of Laborers.
The bill would also create a tax on ‘luxury’ cars over the cost of $100,000, and other luxury vehicles such as boats, non-commercial aircraft, and motor vehicles that cost over $500,000. It would also increase electric vehicle registration fees, registration fees for all cars, driver’s license fees, tire fees, and large events with over 20,000 attendees.
“We have strived over the years to make sure that our games are affordable to all price points,” said Amber Carter, who handles government affairs for the Seattle Mariners. “We have a large number of $10 games that this would be an equivalent 10% tax.”
Carter pointed that teams or event hosts like the Mariners would have to pay the tax on unsold tickets. The Seattle Sports Commission testified that it could dissuade events from being held in Washington because of the tax.
When it comes to the gas tax, Washington is the third highest in the nation, behind only Pennsylvania and California.
“Please, be nice to the middle class,” said Kenny, who says high gas prices strain what he can provide for his family. “It’s hard enough with inflation and everything else going on in this world. Please be nice to us, please.”
For Clussie Bagey, the owner of Blessed Charters, he worries the increase will mean he will have to consider laying off people, especially because of the automatic, annual 2% increase. That’s a rate that far outpaces the growth of his revenue each year.
“I would have to think about people not coming back anymore and that hurts to let somebody’s family be hurt by taxes being so high on gas,” Bagey said.
It comes as WSDOT says highway conditions are becoming worse and 229 bridges across the state are rated in “poor” condition.
“We believe this bill represents a broad-based approach to generating revenue, needed revenue, for infrastructure investments,” said Jerry Vanderwood, a lobbyist for Associated General Contractors.
“The gas taxes will help ensure that revenue can keep pace with inflation and ease the need for adjustments in the short term,” Vanderwood continued.
The bill already has passed the State Senate. Wednesday morning, the State House Transportation Committee will vote to send it for a full House Floor vote before the session is scheduled to end on April 27.
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