Updated
Updated · MyNorthwest · Jun 21
Washington Raises Gas Tax 6 Cents to 55.4 Cents on July 1 Over $1 Billion Shortfall
Updated
Updated · MyNorthwest · Jun 21

Washington Raises Gas Tax 6 Cents to 55.4 Cents on July 1 Over $1 Billion Shortfall

2 articles · Updated · MyNorthwest · Jun 21

Summary

  • Washington’s gasoline tax will rise to 55.4 cents a gallon on July 1, the first increase in nine years, while the state diesel tax climbs 3 cents to 58.4 cents.
  • A projected $1 billion gap in the two-year transportation budget drove lawmakers to approve the increase as part of a six-year, $3.2 billion funding package signed by Governor Bob Ferguson.
  • At 55.4 cents, Washington will have the nation’s third-highest state gas tax, behind California and Pennsylvania.
  • The increase underscores Washington’s reliance on fuel taxes as the main revenue source for transportation, even as some drivers say higher pump costs are pushing them toward electric vehicles.

Insights

As Washington mandates a shift to EVs, how will it replace the disappearing gas tax revenue needed to maintain its roads?
Beyond the new gas tax, who will bear the multi-billion dollar cost of upgrading the grid for Washington's all-electric vehicle future?