This bill amends existing Washington state laws 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 of new and used vehicles, excluding retail car rentals, will be deposited into the motor vehicle fund and can only be used for highway-related expenditures as defined in RCW 46.68.130. The bill also clarifies the definition of "vehicle" for these purposes 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 introduces new provisions for the use tax on vehicles, which will also be directed to the motor vehicle fund for highway purposes starting on the same date. The amendments to RCW 82.08.020 and RCW 82.12.020 include the insertion of new language that outlines these changes, while also deleting outdated references. The bill emphasizes the importance of these funds for maintaining and improving the state's highway infrastructure, declaring an emergency for its immediate implementation.

Statutes affected:
Original Bill: 82.08.020, 82.12.020, 46.68.090