WashingtonSB 58012025-2026 Regular SessionSenateWALLET

Concerning transportation resources.

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Bill Overview

Analyzed Economic Effects

65 provisions identified: 28 benefits, 12 costs, 25 mixed.

Higher taxes on fuel, vehicles, boats, aircraft

Starting July 1, 2026, an 8% tax applies to the part of a vehicle’s price (plus trade‑in) above the yearly deduction amount ($100,000 for FY 2026, rising 2% each July 1). A matching 8% use tax applies to vehicle value above that deduction when the vehicle is used in the state. A 10% tax applies to the portion of a noncommercial aircraft’s price or value over $500,000; a matching use tax applies unless already taxed or the aircraft is registered out‑of‑state by a nonresident. Recreational vessels face an extra 0.5% on purchases (price plus trade‑in) or on lease value at lease start, and a state use tax applies at first use in Washington. State fuel tax rates rise 2% each year beginning July 1, 2026 (with two categories that start July 1, 2026 and July 1, 2028), and vehicle license fees also rise 2% yearly starting July 1, 2026. Certain legal protections in RCW 82.32.805 and 82.32.808 do not apply to these new luxury taxes.

Clean car sharing for low-income workers

The public transportation division supports clean-fuel car sharing for underserved areas. It targets low- to moderate-income workers not well served by transit. Eligible nonprofits and local governments with a track record can apply. The department sets criteria and may adopt rules.

New rights for solicited home sales

For contracts signed on or after January 1, 2026, if a buyer approaches you to buy your off‑market property, you can get an appraisal at the buyer’s expense. The appraisal must be ordered within three business days. You can cancel without penalty within four business days after you get the appraisal, or within 10 business days if you decline the appraisal. The contract must clearly state these rights. Deals with licensed brokers and public acquisitions for transportation are excluded.

Independent experts for ferry projects

Washington State Ferries must hire outside experts to oversee new vessel projects. Experts help manage change orders and advise on contracts and technical issues. They report twice a year to lawmakers and the budget office.

More climate funds to burdened communities

Each year, at least 35% of certain climate funds must directly help vulnerable people in overburdened communities. The goal is 40%. At least 10% must fund projects formally supported by an Indian tribe. Projects can count toward both targets. Agencies getting carbon reduction funds must report projected and actual emission cuts from fuel conversions using the committee tool.

One main review for transit projects

Agencies, cities, and counties must accept a transit agency’s detailed environmental statement as the single state review if there is a scope dispute. Regional transit authorities are excluded. Existing NEPA documents may satisfy state requirements.

Certified centers get funding priority

To get state funding, a growth and transportation efficiency center must be certified by the regional transportation group. Certification requires a transportation demand management plan with goals to cut solo driving, a finance plan, performance measures, and land‑use and parking review. Transit and local agencies must treat certified centers as priorities for new service and facilities.

New county road program and emergencies

The state creates a county local road program to fund preserving and improving county roads. The County Road Administration Board sets allocation rules and reports yearly to the Legislature. The board can treat truly unexpected road needs as emergent projects if money is appropriated, and it can approve later allocation increases under rules that protect other projects and check scope and cost estimates.

Safer streets and walking routes

State road projects must follow complete streets rules when design starts between July 1, 2022 and July 31, 2025 and cost $500,000 or more, and for design starts on or after August 1, 2025 that cost $1,000,000 or more. Agencies must look for missing ADA sidewalks and bike routes, consult local governments, use speed management, and build context‑sensitive safety connections. The Sandy Williams program funds walking, biking, and safe routes, with a focus on low‑income households, people with disabilities, and communities near transit. For cameras first placed after June 6, 2024, starting four years after they begin operating, 25% of excess fine money goes to the Cooper Jones safety account.

Program for privately funded EV charging

The state runs a program for privately financed charging and refueling sites. The public-private partnership office defines corridors and sets bidder criteria. Bidders may propose corridors if rules allow. A selected project may receive one loan or one grant under this program.

Zero-emission bus taxes waived for transit

Transit agencies and federally recognized tribes do not pay state sales or use tax on qualifying zero‑emission buses. Buyers must give sellers a state exemption certificate. These exemptions end after the month following when total exemptions reach $14 million; the department posts monthly totals and the expiration date. Each Feb 28, May 31, Aug 31, and Nov 30, the state moves from the carbon emissions reduction account to the general fund the sales/use tax revenue forgone in the prior quarter.

Property tax limits change in TIF areas

Taxing districts can add extra dollars to their levy limits based on assessed‑value growth inside a tax increment area. This also applies to the first levy after annexation or consolidation. Some increases are exempt from extra public‑hearing steps. State levies and certain port and utility district debt levies are excluded. Only increment areas approved by a district’s governing body can participate.

Higher DMV and vehicle weight fees

For registrations due on or after January 1, 2026, passenger weight fees are set at: 4,000 lb $35; 6,000 lb $65; 8,000 lb $82.50; 16,000+ lb $96. For registrations due on or after January 1, 2029, they are: 4,000 lb $35; 6,000 lb $75; 8,000 lb $90; 16,000+ lb $110. Motor homes pay $75 instead of those weight fees. Registration filing is $6.00, title filing is $6.50, title service is $18, and registration/permit service is $11. RV registration adds an $8 disposal fee. Separate license fees by declared weight still apply to heavier vehicles under the state weight schedule.

New fees for heavy and car sharing vehicles

Vehicles with declared gross weight over 10,000 pounds must pay a freight project fee equal to 15% of the license fee, rounded to the nearest dollar. Vehicles at 12,000 pounds or less pay an extra $10 weight fee. Starting January 1, 2027, peer‑to‑peer car sharing transactions pay an additional tax equal to the selling price times the referenced rate when the owner acquired the vehicle for resale using a reseller permit or approved exemption. These receipts go to state transportation accounts under law.

Personal liability for unpaid trust taxes

When a limited liability business ends, is abandoned, or is insolvent, the Department of Revenue can collect its unpaid trust taxes from responsible people. This includes penalties and interest and now covers the new luxury taxes. The collection follows warrant procedures under state law.

New impound holds and low-income help

The law sets new hold times for impounded cars: up to 30 days for suspended-license cases, 60 days with one prior in five years, and 90 days with two or more. If the driver was arrested, the car is released only when an eligible person meets release rules or a written order allows it. The law also creates help for indigent owners after a private-property or law-enforcement impound (not ordered following an arrest). The owner must be the legal or registered owner, show indigency, and not have applied more than once in the past year; the tow operator must submit verification. Payments go to the tow operator, depend on available funds, and a waitlist may form; operators who release a car under this help waive any lien or deficiency.

Ferry contracts favor in-state and small firms

Bids for vessels built in Washington get a credit equal to 13% of the bid price times the share built in‑state. Contractors must meet apprenticeship rules. On contracts that can use federal funds, they must meet federal DBE targets. Contractors located in Washington must meet the state’s small business enterprise enforceable goals program.

Limits and safeguards for TIF areas

A tax increment area’s assessed value is capped at the smaller of $200,000,000 or 20% of the sponsoring jurisdiction’s total assessed value, measured when the ordinance passes. If two areas are created, their combined value cannot exceed that cap at ordinance passage. If an increment area affects at least 20% of a hospital or fire district’s assessed value, or those districts show increased service needs tied to the area, the local government must negotiate mitigation. If no agreement is reached, a three‑person arbitration board issues a binding decision.

More traffic cameras with guardrails

Cities and counties may add automated traffic cameras by passing an ordinance and doing a location and equity analysis. Images can show only the vehicle and plate, and a notice must be mailed within 14 days. Camera money can only fund traffic safety and must include fair shares for low‑income and high‑injury areas in larger places. Big cities face tight limits on where cameras go. Bus‑mounted cameras are allowed in the largest counties if the local council approves, and cameras may enforce ferry queues with DOT consultation. Cities must post annual camera reports, and a statewide report to lawmakers starts July 1, 2026.

New rules for public-private road deals

The law sets a new framework for public-private transportation projects. WSDOT may hire a selected proposer to do environmental and engineering studies when no federal funding or direction exists. Proposers must mark and justify confidential parts; patent details stay private until the patent ends; others until a final deal. Every deal must protect workers, include payment bonds, set compensation terms, limit returns, share extra revenue, and allow audits and penalties. If a project uses tolling, it must match state toll technology standards. The department must show best value and get legislative approval before signing. The state may use eminent domain for needed land; it must own the property in fee simple. The state may partner with other governments, including Canadian provinces; federal rules control on federally funded projects. These sections form a new chapter in Title 47.

Ferry funding transfers and spending priorities

The Legislature may move extra money from the capital vessel replacement account to the Connecting Washington account for ferry terminal projects. The law also removes the rule that vessel‑replacement money must first go to a 144‑car ferry. After appropriation, funds can be used for other allowed purposes in the account.

New rules for county road projects

County projects are picked using new priority rules that include safety, bridge condition, access to community sites and reservations, and investment in overburdened communities. Allowed projects include road preservation and rehabilitation, reconstruction, bridge replacements, fish‑passage fixes, and ADA‑compliant sidewalks. Counties may have to provide matching funds under rules the board sets after studying county finances. A county is eligible only if it spent its road revenues on road purposes in the prior 12 months, with exceptions for very small counties, voter‑approved uses, and certain diversions under law.

New toll rules for bridges and SR 520

Transit buses, vans, and ride-share vehicles are no longer exempt from bridge tolls. School buses stay exempt. The state can now toll more parts of SR 520, not just the floating bridge. But ramp or segment tolling on SR 520 cannot start until traffic, revenue, and environmental studies are finished using 2025–2027 funding, and those studies must look at neighborhood access. Toll rules must be updated by October 1, 2025.

Who maintains streets shifts with growth

The population cutoffs that decide who maintains certain streets and traffic signals rise over time: 30,000 on July 1, 2023; 32,500 on July 1, 2025 for cities at or under 30,000 on January 1, 2025; and 35,000 on July 1, 2030. As cities grow past these thresholds, duties shift between the state and cities.

Limits and one‑time option for TIF

Local governments can have no more than two active tax increment areas at once, and areas cannot overlap. Each increment area must end within 25 years of the first tax allocation collection. After adoption, new public improvements and boundary changes are barred unless needed to build or operate the approved projects. For fiscal year 2026 only, one specific city type near I‑405 may approve combined areas up to $500 million in value if enacted by June 30, 2026 and taxing districts agree.

New rules for public‑private projects

Before using a public‑private partnership (P3), the transportation department must find it is in the public interest, adopt rules, keep public ownership, allow public comment, and notify state leaders. The department may pay stipends and evaluation costs for proposals if money is appropriated and must charge and later repay those early costs from project financing. The department may hire outside legal, financial, and technical experts. The law repeals the former Transportation Innovative Partnership Act.

Cleaner ferries and faster procurement

Washington State Ferries must buy at least five new hybrid diesel‑electric ferries that carry up to 160 vehicles. The state may use one or two contracts, design‑build, design‑bid‑build, or a lease with option to buy (with governor and legislative approval). Contracts must cover at least two vessels and are exempt from some procurement rules, and ongoing procurements are not changed. Bidders can get incentives for designs that cut crew needs, lower life‑cycle costs, or speed delivery, and capacity exceptions are allowed if efficiency goals are met. Ferries must use at least 5% biodiesel and plan to move to the highest biofuel blend or renewable diesel available by 2030.

New P3 fund and treasury earnings shifts

The state creates a public-private partnerships account to hold bond proceeds, project revenues, and other money for transportation projects. Funds can pay for planning, land, financing, design, and construction, and may be pledged to secure project debt. Only the transportation secretary or a designee can release money. The account follows allotment rules and does not need a separate appropriation. The law also removes two climate accounts from the list that share treasury earnings, shifting how those earnings are distributed.

Pilot rules and fees for vessels

Oil tankers of 5,000 gross tons or more must take a Washington-licensed pilot in Puget Sound and on the Columbia River. Small passenger vessels and yachts under 1,300 gross tons and 200 feet may get pilotage exemptions. Applicants must disclose operations; the board reviews yearly and may revoke. Application and renewal fees may not exceed $1,500. Ferry vessel builders must meet water pollution control rules.

Where aircraft fuel tax money goes

Aircraft fuel excise taxes go to the state’s aeronautics account and can be spent only after appropriation for aviation purposes. Sales or use taxes paid on aircraft fuel go to the state general fund.

Temporary plate extensions in shortages

By December 1, 2025, the Department of Licensing must set rules to extend temporary license plates when permanent plates are short. The rules must reduce extra trips for customers and include a plan to coordinate with state and local law enforcement.

Free bikes and training at schools

The state funds a school-based bike education program for grades 3–8 and 6–12. If your child’s school is selected, students can get a free bike, lock, helmet, lights, and repair supplies. Schools are chosen with a focus on poverty impact and need. A nonprofit partner provides curriculum, equipment guidance, and teacher training.

Stipends for state pilot trainees

The pilotage board can pay stipends to people in its trainee program. If you are a trainee in that program, you may receive money while you train. The law does not set the amount or timing.

Tire sellers keep 25 cents per tire

Retailers selling new replacement tires may keep $0.25 per tire that is subject to the state tire fee. Sellers can use this money to cover proper waste tire management costs.

Better coordination on road projects

County and city officials must plan together when a county road project touches a city or town. Counties must also plan with the state DOT if a county project connects to and is affected by a programmed state highway project.

Clearer safety terms for reporting

The law clarifies key words used by the active transportation safety council. For example, a 'nonmotorist' is any user not in a vehicle, and a 'serious injury' prevents normal activities.

Help for alternative‑fuel car sharing

The department may award $50,000 to $200,000 grants for alternative‑fuel car‑sharing projects, with no more than 10% for admin costs. Washington State University’s energy program must offer education and technical help on alternative‑fuel vehicles. If a non‑government group keeps grant‑funded property when a program ends, it must repay the state at least fair market value.

More reporting on marine pilots

The pilotage board must file an annual report to the governor and lawmakers. It must include pilot and trainee counts, licenses, pay or stipends, incidents, exams, and diversity updates.

Plan for license plate shortages

Corrections and Licensing must quickly warn local licensing offices about plate shortages. They must run a mitigation plan, which can use third-party plate production. Third-party work continues until there is a 90-day inventory.

Shared streets give walkers priority

Cities and counties may name nonarterial roads as shared streets. State nonarterial highways can be shared only if they are the main road in a downtown and DOT approves. On shared streets, cars yield to people walking, biking, and micromobility users. Bicyclists and micromobility users yield to pedestrians. Local governments must post yearly crash, speeding, and DUI numbers for each shared street.

Tracking climate and bus investments

The state must set a process to evaluate investments, coordinate across agencies, and work with the environmental justice council. A “benefit” must reduce burdens, protect overburdened communities, or meet needs they identify. JLARC must track zero‑emission transit buses and estimate pollution cuts. The department must report by July 1, 2026 and every six months on vehicles that qualified for bus tax exemptions and the dollar value by year.

Unified toll systems across Washington

The department uses a simple, unified toll system that works statewide. It avoids toll booths when practical. It sets standards for all toll facilities, including local ones.

More cleanup from abandoned RV fund

Beginning January 1, 2026, only up to 10% of the abandoned recreational vehicle disposal account may go to administration, down from 15%. More money must go to actual RV disposal work.

New tolls need lawmakers or voters

No toll may be imposed on a highway or bridge unless the Legislature authorizes it or local voters approve it by majority. This limits when new tolls can be added.

Quarterly funding for Sandy Williams program

Beginning September 2027, the state treasurer transfers $3,125,000 to the Sandy Williams connecting communities program on the last day of September, December, March, and June each year. This creates a steady funding stream for the program.

Cities must plan for bus rapid transit

Bus rapid transit routes and stops, and harm reduction programs (not including safe injection sites), are listed as essential public facilities in local plans. Cities and counties must consider them when siting and planning.

Stronger review for tax increment projects

Before creating a tax increment area, local governments must make findings that the project will spur private development within current zoning and raise assessed value beyond what private investment alone would do. They must prepare a detailed project analysis, send it to impacted districts, get treasurer review within 90 days, and hold at least two public briefings announced two weeks ahead. The ordinance must set a construction start deadline at least five years out and allow extensions for good cause. Governments may share work by interlocal agreement and may reimburse county assessor and treasurer costs.

Clear rules to set tax increment areas

An ordinance creating a tax increment area must list the public projects it will fund. It must state if bonds or other debts will be issued and the maximum amount. The area takes effect on June 1 following adoption.

Higher license and ID fees

You pay $10 per year for a driver license or identicard. Starting July 1, 2028, that per‑year fee rises by $1 every three years. The department must offer six‑ and eight‑year options. Some eligible identicard applicants pay only the production cost.

Higher ferry fees and card surcharge

You now pay a $0.75 vessel replacement surcharge on every one-way and round-trip ferry fare. Washington State Ferries also adds a fee to recover at least 3% of payment processing costs on each ticket. The fee is shown at checkout and on your receipt. Recovered costs do not count as fare revenue for future fare setting.

Higher taxes on cars and rentals

Car rentals are taxed 11.9% in 2026 and 9.9% starting January 1, 2027. When you buy a motor vehicle at retail, you pay an extra 0.5% of the selling price. New replacement tires cost $5 more per tire. These charges are added at checkout.

Developers can be charged TIF costs

If you agree to participate in creating a tax increment area, the local government may charge you fees to cover its project analysis and setup costs. Fees can include staff time, consultants, and other administrative expenses.

Limits on DCYF sites east of Cascades

The state cannot try to place new DCYF community facilities east of the Cascade crest unless there are the same number or more facilities on the west side. This restricts siting east of the mountains.

Transit grants tied to compliance

A public transportation benefit area that is not fully in compliance with RCW 36.57A.050 by October 1, 2025 cannot receive state grants under chapter 47.66 RCW.

Higher gas taxes and fuel rules

The state raises fuel taxes. Gas goes up 6¢ per gallon starting July 1, 2025. Special fuel goes up 3¢ on July 1, 2025 and another 3¢ on July 1, 2027. The law also spells out when fuel is taxed in the supply chain. If your vehicle uses LNG, CNG, or propane, you pay an annual in‑lieu fee based on a schedule and last year’s special‑fuel tax rate, plus a $5 handling charge, and you must have a valid decal to buy fuel.

Work‑zone speed cameras and fines

The state uses speed cameras in highway work zones only when workers are present. The first ticket is $125; later tickets are $248. Notices must be mailed within 30 days. Photos show only the vehicle and plate and are not public. Signs and a 30‑day awareness campaign are required before cameras turn on. The program ends June 30, 2030.

New asbestos inspection timing for DOT jobs

For Department of Transportation projects, the agency may include a good-faith asbestos inspection in the contract instead of requiring it before bidding. The contractor must complete the inspection and prepare a written report or assumption statement before demolition or construction. The contractor must provide a copy to the department.

Changes to climate accounts and justice council

The climate active transportation and climate transit programs accounts are repealed. Those accounts are also removed from the list that carries the 35% direct‑benefit investment goal for overburdened communities. The environmental justice council adds two tribal members and must give recommendations on programs funded from several climate and investment accounts.

Some sections end 2026–2029

Sections 603 and 902 expire January 1, 2026. Sections 1102 and 1103 expire July 1, 2027. Section 802 expires July 1, 2028. Section 105 expires January 1, 2029.

Towing appointments and lien rules

The State Patrol may appoint and remove tow operators if they fail to apply, report, or follow rules. The Patrol may remove vehicles through appointed operators. Removal and storage costs are a lien on the vehicle until paid, unless the tow was invalid or the vehicle is released under the indigent program.

Transit agencies can absorb city systems

A public transportation benefit area may annex an adjacent city transit system by agreement. Each body must hold a public hearing with notice once a week for four weeks and post online if able. Final actions are by ordinance or resolution and filed with the county. On the agreed date, the city stops running its transit system.

When parts of this law start

Sections 801, 802, and 804–807 take effect June 30, 2025. Sections 101–103, 406, 701–709, 808–814, 1102, 1103, and 1305 take effect July 1, 2025. Sections 305–307 and 401 take effect October 1, 2025. Sections 104, 105, 107–110, 201–206, 301–303, 604, and 903 take effect January 1, 2026. Sections 1307–1309 take effect February 1, 2026. Section 405 takes effect March 1, 2026. Sections 207–211 take effect April 1, 2026. Section 304 and sections 1201–1224 take effect July 1, 2026. Section 803 takes effect July 1, 2028. Section 106 takes effect January 1, 2029. Sections 104, 105, and 107–110 apply to registrations due on or after January 1, 2026. Section 106 applies to registrations due on or after January 1, 2029.

New rules for traffic camera tickets

Places with traffic cameras must post visible signs at least 30 days before activation. Transit vehicles with cameras need a rear sign. Vendors are paid for equipment and service only, not a share of fines. If contracts lack image-quality measures, cities or counties must audit vendors at least every three years. Rental car businesses must, within 18 days of notice, name the driver, show a theft report, or pay the ticket. The Sentencing Guidelines Commission must study if penalties should be standardized.

Where fee and climate dollars go

On June 30, 2025, any leftover money in two climate accounts moves to the carbon emissions reduction account. Aviation revenue goes to a sustainable aviation fuel account if ESHB 2061 becomes law by June 30, 2025; otherwise it goes to the aeronautics account. Each year, the first $600,000 of tire‑fee receipts goes to waste‑tire cleanup; the rest goes to the motor vehicle fund for road‑wear maintenance.

Standard rules for luxury taxes

The Department of Revenue uses its existing tax administration rules to run the new luxury taxes. This sets how collection and enforcement work under chapter 82.32 RCW.

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Sponsors & Cosponsors

Sponsor

Marko Liias
Democratic • Senate

Cosponsors

Curtis King
Republican • Senate
Mike Chapman
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 113 • No: 82

Senate vote • 4/25/2025

Final Passage as Amended by the House

Yes: 31 • No: 17

House vote • 4/24/2025