OLYMPIA — The Washington State Senate approved a bipartisan transportation revenue package Friday to maintain and improve the state’s roads, bridges, ferries, and transit systems. After months of negotiation, the agreement marks a significant step toward securing Washington’s long-term transportation future. 

Senate Bill 5801, sponsored by Sen. Marko Liias (D-Edmonds), addresses declining fuel tax revenues and rising construction costs. The agreed-upon plan is expected to generate $3.2 billion over six years and includes a mix of new and adjusted revenue sources, including fuel taxes, vehicle fees, and sales tax shifts. 

“Washingtonians expect us to deliver on our promises — to finish long-overdue projects, repair aging infrastructure, and ensure our transportation systems can support the needs of a growing state,” said Liias, Senate Transportation Committee chair. “This is a sensible, bipartisan solution that balances multiple funding tools while keeping the system running smoothly. I’m grateful for Sen. Curtis King’s partnership in crafting a revenue plan that prioritizes long-term progress for transportation systems statewide.” 

“I would like to thank Sen. Liias for asking me to join him, before session began in January, to work together to develop a bipartisan transportation budget, and that is what we have done. I believe we have created a no-nonsense budget that will still keep our state’s transportation system moving forward. Raising fees and taxes is not something we take lightly, but we determined it was the only solution to address our state’s transportation challenges,” said Sen. Curtis King (R-Yakima), the ranking Republican on the Senate Transportation Committee. 

Key components of the plan include: 

  • Fuel taxes: A 6-cent gas tax increase — the first in nearly a decade — paired with a new 3-cent diesel tax in 2026 and another 3-cent increase in 2028. Both taxes are indexed to inflation, and 5% of new fuel tax revenue will go to local governments. 
  • Vehicle weight fees: Increased fees for trucks and passenger vehicles, phased in starting in 2026, to ensure those causing more wear and tear on roadways contribute their fair share. 
  • Motor vehicle sales tax: Increases the additional sales tax assessment on motor vehicles from 0.3% to 0.5%. 
  • Sales tax shift: Redirects 0.1% of the state’s 6.5% sales tax to the transportation budget. 
  • Luxury taxes: An 8% tax on vehicles over $100,000 and a 10% tax on aircraft over $500,000. Recreational vessels were removed from the luxury tax but will now be subject to a new 0.5% tax. 

The final agreement reflects key changes made in the House, which removed several proposed revenue sources from the Senate’s original plan. Among the items cut were the large event facility assessment, an e-bike surcharge, a transit vehicle registration offset fee, additional traffic infraction penalties, and a ferry fare increase beyond 2.5%. 

“We listened to concerns and made sure the plan is fair and practical,” Liias said. “This is about making smart investments to build a transportation network that works for everyone — now and in the future.”