This bill amends several sections of Washington state law to dedicate the sales tax revenue from motor vehicle sales and use taxes specifically for highway purposes. Starting July 1, 2025, all revenue collected from the retail sale and use of new and used vehicles, excluding retail car rentals, will be deposited into the motor vehicle fund and can only be used for highway purposes as defined in RCW 46.68.130. The bill also clarifies the definition of "vehicle" and specifies that certain types of vehicles, such as farm tractors (unless used for marijuana production), off-road vehicles, nonhighway vehicles, bicycles, and snowmobiles, are excluded from this tax.

Additionally, the bill includes provisions for the collection of taxes on motor vehicle sales and use, ensuring that these funds are allocated appropriately for highway maintenance and improvements. It emphasizes the importance of these funds for the preservation of highways and outlines the distribution of tax revenues to various accounts related to transportation and infrastructure. The act is declared necessary for the immediate preservation of public peace, health, or safety, and is set to take effect on July 1, 2025.

Statutes affected:
Original Bill: 82.08.020, 82.12.020, 46.68.090