The bill seeks to improve Washington's transportation infrastructure funding by allocating a portion of the state sales tax on motor vehicle sales to the transportation budget. Starting July 1, 2025, a percentage of sales tax revenue from new and used vehicle sales will be directed to the transportation preservation and maintenance account, with the allocation increasing incrementally until it reaches 90% by July 1, 2033. The bill also modifies definitions related to "motor vehicle" for tax purposes and introduces similar provisions for use tax, ensuring that a percentage of use tax revenue from vehicles is also funneled into the same transportation account, following the same incremental increase schedule.

Furthermore, the bill establishes a framework for the allocation of use tax revenue, mandating that starting July 1, 2031, 70% of this revenue will be deposited into the transportation preservation and maintenance account, increasing to 100% by July 1, 2034. The funds are designated exclusively for transportation projects and cannot be used for new revenue bond issues. Additionally, the state treasurer is required to prepare a report every two years beginning December 1, 2025, to evaluate the act's impact on debt financing for transportation appropriations. The act is set to take effect on July 1, 2025.

Statutes affected:
Original Bill: 82.08.020, 82.12.020, 43.84.092