Maneuver to shore up WA's transportation budget could be reversed

Declining gas tax revenue and skyrocketing construction costs have plagued Washington state’s transportation budget for years.

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To deal with this, lawmakers this year passed a slew of new and increased taxes and fees, including a rare increase in the state’s gas tax that will continue to rise alongside inflation.

Another big piece of their solution is to transfer a sliver of sales tax revenue that usually goes toward state operations to transportation efforts.

The switcheroo, accounting for 0.1% of the state’s 6.5% sales tax rate, is expected to raise about $300 million annually, a figure that is predicted to increase each year. It starts in the next biennium, so doesn’t affect the current budget, which runs through mid-2027.

https://washingtonstatestandard.com/2025/12/15/maneuver-to-shore-up-was-transportation-budget-could-be-reversed/