The bill amends Washington state sales tax laws to create a new framework for the taxation of motor vehicles, directing a portion of the sales tax revenue from new and used vehicle sales to a newly established transportation preservation and maintenance account. Starting July 1, 2026, 16.66% of this revenue will be allocated to the account, with the percentage increasing annually until it reaches 100% by July 1, 2031. The bill also clarifies the definition of "motor vehicle" and specifies exclusions for certain vehicles, such as farm tractors and off-road vehicles, ensuring that the revenue generated supports the maintenance and preservation of transportation infrastructure.

Additionally, the bill modifies existing laws regarding the treasury income account, stipulating that it is subject to chapter 43.88 RCW without requiring appropriations for payments to financial institutions. The state treasurer will distribute earnings from this account monthly, crediting the general fund and ensuring that various specified accounts, including the new transportation preservation and maintenance account, receive their proportionate share based on average daily balances. The bill also outlines expiration and effective dates for certain provisions, with Sections 1 through 4 taking effect on July 1, 2026, and Section 4 expiring on July 1, 2028.

Statutes affected:
Original Bill: 82.08.020, 82.12.020