WashingtonSB 58012025-2026 Regular SessionSenateWALLET

Concerning transportation resources.

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

61 provisions identified: 20 benefits, 22 costs, 19 mixed.

Business officers face personal tax debts

Washington can collect a limited liability business's unpaid trust fund taxes from responsible individuals after issuing a tax warrant. The business must be terminated, dissolved, abandoned, or insolvent. Current and former chief executive and chief financial officers are covered for tax periods when they served. Other people responsible for sending in these taxes face liability for willful nonpayment, except when reasons beyond their control prevent payment. Covered debts include the law's aircraft sale and use taxes.

New luxury tax for aircraft buyers

Buyers of covered noncommercial aircraft pay an extra 10% tax on sale value above $500,000. Sale value includes like-kind trade-in property. For periodic-payment leases, the tax uses fair market value above $500,000 when the lease begins. Aircraft covered by the listed statutory exemptions and commercial airplanes are excluded.

New tax on high-value vehicles

Covered vehicle purchases, periodic-payment leases, and consumer use in Washington face an extra 8% tax on value above the threshold. The threshold is $100,000 for fiscal year 2026 and rises 2% each July 1, rounded to the nearest dollar. Sale value includes like-kind trade-ins; periodic-payment leases use fair market value when the lease starts. Seller-collected use tax uses purchase price, and commercial vehicles and vehicles rated above 10,000 pounds are excluded, except motor homes. Revenue goes to the multimodal transportation account.

New use tax on luxury aircraft

Consumers using covered noncommercial aircraft in Washington owe a 10% tax on fair market value above $500,000. A lease with periodic payments uses the aircraft's value when the lease starts. No tax is due if the user, bailor, or donor already paid the law's corresponding aircraft sale or use tax. Nonresidents are exempt when the aircraft is registered or licensed in their home state.

Impound release help for low-income owners

Indigent legal or registered owners can get eligible impounded vehicles released without paying covered costs upfront. Owners must be unable to pay or face severe hardship, submit a certified form, and have applied no more than once in the preceding year. Eligible impounds come from private property or law enforcement action that did not follow an arrest. State payments to tow operators have maximum rates, depend on appropriated funds, and are not guaranteed; unpaid eligible applications are waitlisted. Tow operators must provide program notices and forms for potentially eligible vehicles. After program release, operators cannot claim a lien or deficiency on the vehicle, and specified State Patrol towing and storage costs cannot become liens.

Climate investments must benefit burdened communities

Agencies must direct at least 35% of covered climate and environmental investments to directly benefit vulnerable people in overburdened communities. The goal is 40%. Agencies must conduct environmental justice assessments, follow investment principles, and report progress annually to the environmental justice council. They must also consider the council's recommendations. Agencies outside the covered-agency group must adopt a community engagement plan when handling climate investment account funding.

Extra sales tax for vehicle buyers

Washington charges an additional 0.5% of the selling price on covered retail motor vehicle sales. Exclusions cover specified farm tractors and farm vehicles not used in cannabis production. Off-road vehicles, nonhighway vehicles, and snowmobiles are also excluded. Revenue goes to the multimodal transportation account.

New taxes for recreational boat buyers

Beginning July 1, 2026, covered recreational boat purchases carry an extra 0.5% tax, including the value of like-kind trade-ins. For leases with periodic payments, the tax uses the boat's fair market value when the lease starts. The law also taxes a consumer's first Washington use of a qualifying boat beginning that date. These rules cover boats subject to Washington's watercraft excise tax. Revenue goes to the multimodal transportation account.

Temporary plate extensions during plate shortages

The Department of Licensing must adopt temporary plate extension rules by December 1, 2025. Extensions apply during permanent license plate shortages. The rules must aim to reduce customers’ return trips and include a plan to inform state and local law enforcement. The law does not set a guaranteed extension period.

Free bike opportunities for school kids

Washington's two school bicycle education programs serve grades three through eight and grades six through 12, respectively. These replace school-level categories and the second program's age 14-to-18 limit. Participants in either program have an opportunity to get a free bicycle, lock, helmet, lights, and maintenance supplies. The law does not guarantee equipment for every participant.

Tire retailers keep more fee money

Retailers can keep 25 cents for each new replacement vehicle tire subject to the tire fee. This replaces their previous share of 10% of the $1 fee, or 10 cents. Retailers can use the retained money to pay for proper waste-tire management.

Climate funding targets tribally supported projects

At least 10% of investments from four covered climate and air-quality accounts must support projects backed by a tribal resolution. These are the carbon emissions reduction, climate commitment, natural climate solutions, and air quality and health disparities improvement accounts. Otherwise eligible projects run or proposed by tribes get priority. The same investment can also count toward the separate 35% target for vulnerable populations in overburdened communities.

Fewer local barriers to transit projects

Local plans must address high-capacity transit improvements and bus rapid transit routes and stops as essential public facilities. Bus rapid transit includes fixed-route buses with lasting high-capacity features, such as dedicated lanes or signal priority. For high-capacity transit improvements, cities and counties cannot impose costs or conditions beyond what is reasonably necessary to address impacts directly caused by the project. Permitting agencies must commit to reasonable timelines without unnecessary delay. Transit construction, maintenance, repair, or replacement within transportation department rights-of-way is exempt from the listed local shoreline permits and reviews.

State ferries must use cleaner fuel

Washington State Ferries is exempt from the section's general biodiesel rules but must meet its own minimum. Biodiesel must equal at least 5% of the ferry system's total diesel use. The system must develop processes to move diesel vessels to the highest possible available biofuel blend or renewable diesel by 2030.

Transit projects avoid duplicate environmental reviews

When agencies or local governments disagree with a transit agency about project scope, they must use its detailed environmental statement alone. They cannot conduct separate reviews or prepare additional statements. For federally funded transit projects, they must adopt an adequate detailed statement from a completed federal environmental review. They must rely on it for review and permitting and align applicable local documents with it. Regional transit authorities are excluded from this rule.

Alternative-fuel vehicle education continues beyond 2025

Washington State University’s extension energy program must provide technical help and education about alternative-fuel vehicles. The law removes the previous limit tying the program to appropriations through the 2023–2025 budget period. The provision states no funding amount or direct household savings.

Canadian-bound tankers get a pilotage exemption

Registered oil tankers of at least 5,000 gross tons traveling to or from Canadian ports can use a pilotage exemption. They must employ a Pacific Pilotage Authority-licensed pilot. They must communicate with the vessel traffic system and carry appropriate navigation charts. The exemption applies only in the Washington waters specified by the governing statute.

Clean-fuel car-sharing grants expand community access

The state removes the pilot restriction and 2023–2025 appropriation limits from its clean-fuel car-sharing grant program. Projects serve underserved communities and low- to moderate-income workers lacking convenient transit, or communities in corridors exceeding emissions standards. Eligible nonprofits and local governments, including housing authorities, must have experience managing low-income clean-transportation and shared-mobility pilots. Grants range from $50,000 to $200,000, with no more than 10% for administration; selection considers equity experience, community involvement, sustainability, matching resources, and geographic diversity. Nongovernmental recipients must use state-funded property only for the program and repay at least fair market value for property retained when it ends.

Counties must coordinate connecting road projects

County local road projects next to a city or town require joint planning with that community. Both governments must include the improvement in their long-range plans. Counties must also plan with the state transportation district administrator when connected projects face substantial effects from programmed state-highway construction.

Dedicated funding for connecting community transportation

The law creates a dedicated account for the Sandy Williams connecting communities program. Beginning September 2027, the treasurer transfers $3.125 million quarterly from the multimodal transportation account. Transfers are due by the last day of September, December, March, and June, totaling $12.5 million yearly. Spending requires an appropriation and is limited to the program’s listed activities. This funds the program, not direct household payments.

Fuel tax revenue supports local transportation

Beginning July 1, 2025, net revenue from specified additional fuel taxes is divided among local governments and the state. Cities and towns receive 2.5%, and counties receive 2.5%. The remaining 95% goes to the Motor Vehicle Fund. This directs public revenue rather than paying households.

New grants support county road improvements

The law creates a county local road program, with funding rules and annual legislative status reports. Eligible work includes repairs, reconstruction, listed bridge replacements, human-caused fish-passage barrier removal, and pedestrian facilities. Projects must improve county roads not federally classified as arterials or collectors and appear in the county’s six-year plan. Selection rules must consider overburdened communities, environmental health disparities, tribal access, road condition, collisions, community facilities, and planning needs. These provisions state no funding amount.

Public safeguards for private transportation partnerships

Before seeking private partners, the transportation department must find the approach serves the public interest and allow public comment. It must notify the public, governor, and legislative transportation leaders, and consult relevant governments when evaluating projects. State agreements must include applicable worker and supplier protections, tolling standards, and terms covering costs, risks, returns, audits, performance, and termination. Private-partner agreements must also address public participation and the return of project assets. Before signing, the department must transparently compare public value, costs, capacity, risk, timing, quality, and innovation; legislation must approve the agreement.

State supports private clean-fuel charging sites

The transportation department must maintain a program supporting privately financed clean-fuel vehicle charging and refueling sites. A selected project can receive one state loan or grant. Private partners must contribute and receive indirect value from the project. Proposals must show a benefit to clean-fuel drivers and fill an existing low-carbon transportation infrastructure gap. Projects must be expected to remain profitable and sustainable for the owner-operator and private partner.

Tire fees fund cleanup and roads

The first $600,000 in net tire-fee receipts each fiscal year goes to the waste tire removal account. That money supports cleanup and prevention of unauthorized tire piles. Remaining receipts go to the motor vehicle fund for road-wear maintenance on state and local public highways. Spending from the cleanup account requires an appropriation.

Partnership projects retain worker and business protections

Applicable public works rules cover the entire eligible partnership project unless they conflict with the partnership chapter. These include responsible-bidder, apprenticeship, and prevailing-wage requirements. Federally funded projects must follow the transportation department's disadvantaged business inclusion requirements. Projects without federal funding follow state laws, rates, and rules, including public works small business certification. For federally funded work, applicable federal rules control when they conflict with the chapter or require additional procedures or contract terms.

Ferry customers face payment processing fees

Washington State Ferries must use cost-recovery methods to recoup at least 3% of financial transaction costs for collecting fares. It can also recover credit-card transaction fees. The 3% target concerns transaction costs, not a required 3% surcharge on each fare. Customers must receive fee notice at the point of sale, and receipts must list the fees separately. Recovered costs do not count as revenue when setting fares; individual fee amounts are not specified.

Ferry riders pay higher replacement surcharges

Washington State Ferries’ vessel replacement surcharge rises from 25 cents to 75 cents per one-way or round-trip fare sold. It rises to 85 cents beginning October 1, 2027, and 95 cents beginning October 1, 2029. Riders pay the surcharge on each covered fare purchase.

Higher disposal fee for recreational vehicles

Registering a camper, motor home, or travel trailer includes an $8 disposal fee, up from $6. The money goes to the abandoned recreational vehicle disposal account.

Higher registration and title service fees

The filing fee for covered registration applications rises from $4.50 to $6, on top of other fees and taxes. The title application filing fee rises from $5.50 to $6.50. The service fee for registration renewals, transit permits, and related covered services rises from $8 to $11. Covered title changes, ownership changes for untitled vehicles, verification services, and separate lost-title affidavits cost $18, up from $15.

Higher weight fees for vehicle owners

For covered registrations due on or after January 1, 2026, vehicle weight fees rise. A 4,000-pound vehicle’s fee rises from $25 to $35; a 6,000-pound vehicle’s fee rises from $45 to $65. Beginning January 1, 2029, covered fees are $75 at 6,000 pounds and $90 at 8,000 pounds. The 2029 fee is $110 at 16,000 pounds or more, while the 4,000-pound fee stays $35. Fees use vehicle weight, rounded up to the next listed weight when needed.

License and ID fees keep rising

Driver’s licenses and state ID cards cost $10 for each year issued, renewed, or extended. Beginning July 1, 2028, the yearly rate rises by $1, then another $1 every three years. Total charges depend on the term and transaction date. ID applicants receiving continuing public assistance grants or participating in WIC still pay only the card’s actual production cost. That exception also covers applicants under 25 without a permanent address and those facing or following release from specified facilities.

Work-zone camera speeding carries set penalties

A first camera-recorded speeding violation in a state highway work zone carries a $125 penalty. A second or later violation carries a $248 penalty. Workers must be present when the camera records the violation. These infractions are treated like parking infractions and do not appear on driving records. The penalty provision expires June 30, 2030.

Higher fuel taxes for Washington drivers

Beginning July 1, 2025, Washington adds 6 cents per gallon to motor vehicle fuel taxes. Special fuel taxes rise 3 cents that day and another 3 cents on July 1, 2027. The specified existing fuel tax rates rise 2% annually beginning July 1, 2026. The two special fuel additions rise 2% annually beginning July 1, 2028. Annual increases are rounded to $0.001; fuel licensees owe the tax, and buyers can face higher pump prices.

Higher taxes for car renters

The added retail car rental tax rises from 5.9% to 11.9% during January 1–December 31, 2026. Beginning January 1, 2027, it is 9.9%, regardless of whether the rental vehicle is licensed in Washington. A 9.9% tax also starts that day for qualifying peer-to-peer car sharing. That tax covers vehicles obtained for resale with a reseller permit or approved exemption certificate, excluding retail car rental transactions. Both taxes fund the multimodal transportation account.

Higher tire fees for vehicle owners

Buyers pay a $5 fee for each new replacement vehicle tire bought at retail, up from $1. Retreaded tires are excluded. Sellers collect and remit the fee, keeping 25 cents per tire. The first $600,000 of net receipts supports waste tire removal; the rest supports road-wear maintenance through the Motor Vehicle Fund.

Higher weight fees for commercial vehicles

Beginning January 1, 2026, covered vehicles pay revised weight-based license fees. For a 6,000-pound vehicle under either covered schedule, the fee rises from $73 to $80. Beginning July 1, 2026, these fees rise 2% each year, rounded to the nearest five cents. The charge depends on declared gross weight and the applicable fee schedule.

Local shared streets need state approval

Local authorities can designate a shared street on a nonarterial state highway only when it is a primary downtown road. The road must run through a central business district. The local authority must consult the state transportation department and obtain approval first. Its ordinance must define the district's boundaries.

State-owned rail corridors lose fencing requirement

Rail right-of-way owned by Washington's Department of Transportation is exempt from the railroad fencing requirement. The law does not state how much track is affected or require existing fences to be removed.

Transit agencies face grant compliance deadline

Public transportation benefit areas must fully comply with RCW 36.57A.050 by October 1, 2025. Those missing the deadline cannot receive state grant awards under chapter 47.66 RCW. The supplied provision does not explain that compliance standard or specify lost grant amounts.

Transit vehicles lose bridge toll exemptions

The Transportation Commission cannot exempt public or private transit buses, vans, or ride-share vehicles from covered bridge tolls. Public and private school buses are excepted from this restriction. The commission must update tolling rules by October 1, 2025. The law does not set toll amounts or require operators to pass costs to passengers.

Two climate transportation funding accounts end

The law repeals the climate active transportation account and the climate transit programs account. It also removes their shares of treasury investment earnings. These dedicated funding structures end, but the supplied provisions give no account balances or dollar amounts affected.

More Route 520 tolling requires studies

The Route 520 tolling area now includes the road and ramps between Interstate 5 and State Route 202. Toll authority is no longer limited to the floating bridge. Before starting ramp or segment tolls, the transportation department must complete level-three traffic and revenue studies and environmental studies. Those studies must address access and mobility for neighborhoods served by corridor connections. The law sets no toll rates or start dates for individual segments.

New fee formula for alternative-fuel vehicles

Beginning July 1, 2025, vehicles using liquefied natural gas, compressed natural gas, or propane have a revised annual license-fee formula. This fee replaces fuel tax and depends on gross vehicle weight. The calculation multiplies the weight-based schedule amount by the cumulative special-fuel tax rate from July 1 of the preceding year. It then divides by 12 cents and rounds to the nearest five cents. A $5 handling charge still applies.

Cities can join neighboring transit authorities

A transit benefit area and an adjacent city in the same county can agree to annex the city. The city must operate a qualifying transit system, and both governing bodies must hold public hearings. Hearing notices must appear weekly for four weeks in newspapers serving both areas. Once annexed, the city joins the benefit area and must stop operating its separate transit system. The county can then add areas under its authority by resolution; the law sets no fares or service levels.

Partnership proposals get limited secrecy protections

Proposers must identify material claimed as confidential, proprietary, or a trade secret and explain why it should stay private. Patent information remains protected until the patent expires. Original design information and negotiation records stay protected only until the partnership agreement is reached. Projects under federal jurisdiction or using federal funds remain subject to applicable federal disclosure rules.

Transportation contractors handle asbestos inspections later

For state transportation work that could disturb asbestos, the department can put the inspection in the construction contract. It no longer must complete that inspection before contractors bid when using this option. The contractor must finish the good-faith inspection before construction or demolition starts. The contractor must prepare and keep the required report or asbestos assumption statement and provide it to the department.

Walking and biking rules narrow coverage

Qualifying state transportation projects must identify walking and biking gaps, consult local governments, and build safe, connected facilities suited to the area. Speed management applies where it aligns with local plans or ordinances. Projects starting design from July 1, 2022, through July 31, 2025, qualify at $500,000 or more. For designs starting August 1, 2025, or later, the minimum rises to $1 million, reducing the projects covered. Emergency work needed to reopen a state highway is exempt.

Transit cameras can enforce bus lanes

Transit authorities in counties with more than 1.5 million residents can use vehicle-mounted cameras to enforce transit-only lane rules. The local legislative authority must approve camera use. Cameras can detect traveling, stopping, standing, or parking in those lanes. Where local camera use is authorized, transit authorities must share evidence establishing violations for local infraction processing. Camera-equipped transit vehicles must display rear signs explaining enforcement of transit-only lanes and bus-stop zones.

County road grants add spending limits

Counties generally qualify for local road program funding only after using all road-purpose revenue for road purposes during the preceding 12 months. Allowed uses include specified fish-passage work and permitted traffic enforcement. Exceptions cover counties under 8,000 residents, spending authorized by voters under the cited levy law, and specified road-district levy diversions. The road board must sequence construction funding by proposal completion and contracting and can reserve money for projects starting next biennium. With a specific appropriation, it can fund an urgent project outside a county's six-year plan if the county conclusively shows the need was unforeseeable; statutory priority factors still apply.

County road grants require matching funds

Counties receiving local road program grants must provide matching money; the board sets amounts after studies considering counties’ financial resources. The board sets each project’s grant using county information and any further review it finds necessary. Counties can later apply for increased funding. Rules for increases must consider effects on other projects, reducing work while keeping a usable segment, original estimates, and expanded scope. The law states no match amount or grant size.

Lower overhead cap for abandoned campers

The Department of Licensing can use up to 15% of abandoned recreational vehicle disposal account spending for specified administrative costs through December 31, 2025. Beginning January 1, 2026, that cap falls to 10%. The limit covers administration of the 2018 disposal law, leaving a larger share available for other account purposes.

More financing options with project safeguards

Eligible partnerships can use public money, grants, loans, bonds, private contributions, gifts, land, tolls, and user fees. Required legislative approvals still apply, toll projects need legislative authorization, and the State Finance Committee must approve financing before signing. Project revenue creates no state general obligation unless legislation specifically authorizes it. A new partnership account can fund project work without an appropriation, through secretary-authorized distributions subject to state spending controls; subaccounts can secure debt. Specifically appropriated money can cover proposal stipends, evaluation, and negotiation, but early costs require repayment from financing unless the transportation budget says otherwise.

New hybrid ferries and funding flexibility

The state must contract for at least five new hybrid diesel-electric ferries, each capable of carrying up to 160 vehicles. Each contract must cover at least two vessels, with options for more; purchases underway before section 403 takes effect are exempt. All specified vessel-replacement surcharge revenue goes to the capital vessel replacement account for vessel purchases, construction, and related bond payments, subject to appropriation. The account no longer must first support a vessel carrying at least 144 cars. The Treasurer also loses authority to transfer account money to the transportation 2003 account for 144-car-class ferry bond payments.

New rules for transportation project partnerships

The transportation department must develop policies and, where appropriate, rules for public-private transportation partnerships. They cover project evaluation, procurement, proposal criteria, transparency, local contractor participation, security, and performance. The department must consult its Office of Equity and Civil Rights during rulemaking. Proposed policies and guidelines must reach legislative transportation committees by September 1, 2026. Rules cannot take effect before January 1, 2027.

Partnership projects gain review with toll safeguards

Transportation projects costing the state less than $500 million can be evaluated for public-private partnership delivery. A separate eligibility path covers projects on non-interstate United States routes replacing a seismically vulnerable elevated river-crossing structure at least 1.5 miles long. Eligibility allows evaluation, not automatic selection. The legislature must approve tolls required by an eligible project on a state facility. The Transportation Commission alone sets or adjusts state-facility toll rates.

Project partnerships gain powers affecting property

Washington can make agreements with public partners, other governments, and Canadian provinces to build or operate eligible transportation projects. Without direct federal funding or direction, the department can hire a selected private developer for environmental, engineering, and technical studies. The state can also use eminent domain to acquire property interests needed for eligible projects. Property acquired under that power must be fully owned by the state; this provision sets no compensation amount.

Remaining climate transportation funds change accounts

The law required moving balances remaining on June 30, 2025, from two climate transportation accounts. Money from the climate transit programs and climate active transportation accounts had to go to the carbon emissions reduction account. The law does not state the amount transferred.

More financing flexibility, possible property-tax increases

In fiscal year 2026, a qualifying city can create tax increment areas valued above $200 million, capped at $500 million combined. The city must have over 150,000 but under 170,000 residents, in a county with over 1.5 million residents. Areas must connect to Interstate 405 and fund transportation improvements linking neighborhoods; the city must adopt its ordinance by June 30, 2026. Each taxing district must approve participation by majority vote. Participating districts can count otherwise uncounted property-value growth toward levy limits, including first levies after consolidation or annexation. These revenue increases need no separate authorizing ordinance or resolution; specified state, port, and public utility debt-payment levies are excluded.

Aircraft tax revenue follows aviation priorities

Luxury aircraft tax revenue goes to the sustainable aviation fuel account if House Bill 2061 was enacted by June 30, 2025. Otherwise, it goes to the aeronautics account. This provision assigns the tax revenue; it does not change the tax paid.

Bus tax breaks draw climate funds

Transit agencies and federally recognized tribes get sales and use tax exemptions for qualifying zero-emission buses providing public transportation. Buses must emit only water vapor or no exhaust, and buyers must give sellers an exemption certificate. Exemptions end after the month following the month the Department of Revenue determines total exemptions reach at least $14 million. On the last day of February, May, August, and November, the treasurer replaces the prior quarter's lost general fund revenue. That money comes from the carbon emissions reduction account, using department estimates until retailers can report exempt amounts.

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