All Roll Calls
Yes: 170 • No: 67
WashingtonHB 27112025-2026 Regular SessionHouseWALLET
Concerning transportation resources.
Sponsored By: Jake Fey (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
19 provisions identified: 9 benefits, 5 costs, 5 mixed.
Luxury vehicle tax breaks for qualifying buyers
Qualifying motor homes are exempt from luxury vehicle sales and use taxes from July 1 through December 31, 2026. The purchase or use must occur during that six-month period. Beginning July 1, 2026, vehicle sales qualifying under RCW 82.08.0317 or RCW 82.08.0264 also receive luxury-tax exemptions. Motor homes must meet the state definition in RCW 46.04.305.
Luxury vehicle taxes now count trade-ins
Beginning July 1, 2026, Washington counts like-kind trade-ins when calculating its 8% luxury vehicle tax. The tax applies to the selling price plus trade-in value, minus the applicable deduction. The deduction starts at $100,000 for fiscal year 2026. It rises 2% each July 1, rounded to the nearest dollar. The seller-collected use tax calculation also includes trade-in value and subtracts the deduction.
Aircraft owners lose two special taxes
Washington repeals its luxury aircraft tax and the related deposit and administration rules. It also repeals the special aircraft use-tax provision applying to aircraft valued above $500,000. Affected owners no longer face liability under these repealed provisions. The repeal does not establish an exemption from all other aircraft taxes.
Aircraft owners face higher registration fees
Required annual aircraft registrations and renewals rise from $15 to $30, including commercial unpiloted aircraft operated or based in Washington. Beginning January 1, 2028, applicable registration fees rise 2% annually, rounded to the nearest dollar. The aircraft excise-tax schedule lists annual amounts from $120 to $1,220 by aircraft type. Commercial unpiloted aircraft have a listed $120 tax. Qualifying commuter-carrier aircraft taxes range from $1,000 to $8,000, based on maximum take-off weight.
Boat buyers face an added sales tax
Beginning July 1, 2026, covered recreational boat sales carry an additional 0.5% tax. It applies to the selling price plus the value of like-kind trade-ins. Boats must be subject to Washington's watercraft excise tax. The law also removes the separate additional first-use tax and the prior tax treatment for leased boats.
Seniors can replace licenses with $5 IDs
By January 1, 2028, Washington must offer a $5 identification card to eligible licensed drivers aged 70 or older. Applicants must voluntarily replace their license, meet licensing-department criteria, and expect to live in Washington. Each eligible person gets the reduced fee once, regardless of the card's issuance period. Enhanced-card applicants must also meet the requirements under RCW 46.20.202.
Drivers get clearer notices and toll relief
Toll agencies must prominently mark mailed and electronic toll bills and notices as time sensitive and related to toll violations. The transportation department may reduce or dismiss photo-toll penalties and related fees when incorrect contact information prevented bill delivery. The person assessed the penalty must correct the email or mailing address and provide verifiable evidence. Relief is discretionary, not guaranteed.
Business managers gain aircraft-tax liability protection
The law removes aircraft fuel taxes under RCW 82.48A.010 and RCW 82.48A.020 from this trust-fund tax collection rule. Responsible individuals of limited liability businesses are not personally pursued for those taxes under this provision. The rule still covers specified sales and use taxes, including additional vehicle taxes and taxes under RCW 82.51.010.
Vehicle tax collectors get penalty relief
Washington must waive qualifying penalties and interest for failures to collect additional vehicle taxes under RCW 82.12.818 and RCW 82.08.817. Relief covers reporting periods through June 30, 2026, and excludes periods beginning July 1, 2026, or later. Applicants must file missing or amended returns and pay the balance or enter a payment agreement. They must have timely filed and paid all taxes for the 24 months immediately before the covered reporting period. They must never have received the listed tax-evasion or reseller-permit or resale-certificate misuse penalties. Completed applications are due September 30, 2027; the waiver authority expires January 1, 2029.
Aviation revenue supports airports and sustainable fuel
Aircraft fuel tax revenue goes 72% to the aeronautics account and 28% to the sustainable aviation fuel airport infrastructure account. Aircraft registration revenue is split equally between the aeronautics and sustainable aviation fuel accounts. Aircraft excise-tax Part 1 receipts support aeronautics airport grants and administration; Part 2 receipts go to sustainable aviation fuel. The law creates a sustainable aviation fuel account for airport infrastructure improvement or preservation projects, with spending requiring an appropriation. Aeronautics spending also requires an appropriation and must support aviation purposes.
Transportation and service accounts keep investment earnings
Listed state accounts receive investment earnings based on average daily balances instead of sending those earnings to the general fund. These include agency financial transactions, carbon emissions reduction, climate commitment transportation, complete streets grants, and Cooper Jones active transportation safety. They also include driver licensing technology support, ignition interlock devices, Interstate 5 bridge toll-bond retirement, license plate technology, and marine fuel tax refunds. Recreation resources, Sandy Williams connecting communities, and both sustainable aviation fuel accounts also receive shares. Washington Saves administration, school zone safety, impaired driving safety, and library operations receive shares under both allocation lists, which switch on July 1, 2030.
Transportation accounts receive dedicated tax revenue
Beginning July 1, 2027, Washington directs 0.1% of covered retail sales and use values to the multimodal transportation account. This allocation does not raise the tax rate households pay. For covered fuel taxes, cities and towns receive 2.5% of remaining net revenue, and counties receive another 2.5%. The remaining 95% goes to the motor vehicle fund. These fuel allocations include revenue from the new annual adjustments.
Pollution insurance account loses investment earnings
Beginning July 1, 2030, the pollution liability insurance program trust account loses its listed share of investment earnings. The new allocation list omits that account. Investment income goes to the general fund except for the accounts and exceptions specified in law.
Aircraft fuel distributors pay higher taxes
Washington raises the aircraft fuel excise tax paid by distributors from 18 cents to 25 cents per gallon. It covers aircraft fuel sold, delivered, or used in the state. Any effect on air travel prices depends on whether aviation businesses pass along the added cost.
Fuel taxes rise automatically each year
Washington adds annual fuel-tax adjustments beginning July 1, 2026, for gasoline and July 1, 2028, for special fuel. Each July 1, the formulas apply a 2% increase using the listed tax rates and prior adjustments. They subtract specified base rates to calculate the added per-gallon tax. Each result is rounded to the nearest $0.001 per gallon. Fuel licensees pay the tax, which can reach buyers through fuel prices.
Lease tax payments spread across the term
Beginning July 1, 2026, luxury vehicle taxes may be spread proportionally across scheduled payments on leases with periodic payments. This changes payment timing, not the total tax. If the lease ends early, all unpaid tax is due immediately. The lessor must collect and remit that balance.
Tire sellers follow fee remittance rules
The buyer's fee remains $5 for each new replacement vehicle tire sold at retail. Sellers remit collections to the Department of Revenue after subtracting any amount allowed under RCW 70A.205.430(1). The provision uses that law to determine seller retention rather than stating a 10% retention here.
Tow truck impound rules start later
The law delays the tow truck impound provisions in sections 1307 through 1309. They take effect July 1, 2027, instead of February 1, 2026. The supplied provisions do not describe the underlying impound requirements.
Transit safety grants exclude armed security
Competitive bus and bus facilities grants can fund safety or security upgrades to transit vehicles and facilities. Transit authorities cannot use this grant money for any expenses related to armed security. The restriction governs agency spending, not payments or duties for riders.
Sponsors & Cosponsors
Sponsor
Jake Fey
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/11/2026
Final Passage as Amended by the Senate
Yes: 54 • No: 42 • Other: 2
Senate vote • 3/11/2026
3rd Reading & Final Passage as Amended by the Senate
Yes: 33 • No: 15 • Other: 1
House vote • 2/28/2026
3rd Reading & Final Passage
Yes: 83 • No: 10 • Other: 5
Actions Timeline
Chapter 255, 2026 Laws.
3/31/2026HouseGovernor signed.
3/31/2026legislatureEffective date 6/11/2026*.
3/31/2026HouseSpeaker signed.
3/12/2026legislatureDelivered to Governor.
3/12/2026legislaturePresident signed.
3/12/2026legislatureThird reading, passed; yeas, 33; nays, 15; absent, 0; excused, 1.
3/11/2026HouseRules suspended. Placed on Third Reading.
3/11/2026HouseFloor amendment(s) adopted.
3/11/2026HouseCommittee amendment not adopted.
3/11/2026HousePassed final passage; yeas, 54; nays, 42; absent, 0; excused, 2.
3/11/2026HouseHouse concurred in Senate amendments.
3/11/2026HousePassed to Rules Committee for second reading.
3/5/2026HousePlaced on second reading by Rules Committee.
3/5/2026HouseMinority; without recommendation.
3/4/2026HouseMinority; do not pass.
3/4/2026HouseTRAN - Majority; do pass with amendment(s).
3/4/2026HouseFirst reading, referred to Transportation.
3/2/2026HouseThird reading, passed; yeas, 83; nays, 10; absent, 0; excused, 5.
2/28/2026HouseRules suspended. Placed on Third Reading.
2/28/2026HouseFloor amendment(s) adopted.
2/28/2026House1st substitute bill substituted.
2/28/2026HouseRules Committee relieved of further consideration. Placed on second reading.
2/27/2026HouseReferred to Rules 2 Review.
2/25/2026HouseTR - Majority; 1st substitute bill be substituted, do pass.
2/25/2026House
Bill Text
Session Law
4/2/2026
Bill as Passed Legislature
3/12/2026
Engrossed Substitute
2/28/2026
Substitute Bill
2/27/2026
Original Bill
2/2/2026
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