The bill aims to reduce taxes on special fuels, particularly diesel, in Washington State. It recognizes that high tax rates on diesel contribute to increased prices for food and goods, as vehicles using special fuels are essential for food production and the economy. The legislation removes a planned special fuels tax increase set to take effect on July 1, 2025, and eliminates future increases. Specifically, it amends RCW 82.38.030 to ensure that the cumulative tax rate per gallon of special fuel is reduced to the level it was on July 1, 2016, effectively reversing the scheduled tax hikes.

Additionally, the bill modifies the annual license fee structure for nonpolluting fuels such as liquefied natural gas, compressed natural gas, and propane. It introduces a provision that for the year 2026, the cumulative fuel tax rate will be calculated using the 2024 amount, rather than the previous year's rate. This change is intended to provide further financial relief to users of these alternative fuels. Overall, the bill seeks to make fuel purchases more affordable in Washington, encouraging residents to buy fuel within the state and supporting local economic growth.

Statutes affected:
Original bill: 82.38.030, 82.38.075