The bill amends Washington state law regarding transportation resources, particularly focusing on motor vehicle fuel taxes and sales taxes. It establishes a cumulative tax rate on fuel, beginning with a base rate of 23 cents per gallon, and introduces additional increases that will reach six cents per gallon for regular fuel and three cents for special fuel by July 1, 2025. The method for calculating future tax increases is modified to replace a fixed annual increase with a formula that adjusts based on existing rates, ensuring responsiveness to economic conditions. Additionally, the bill imposes a 0.5% tax on retail sales of motor vehicles, along with taxes on car rentals and peer-to-peer car sharing transactions, with revenue directed to the multimodal transportation account.

Further amendments include the introduction of a luxury tax on noncommercial aircraft valued over $500,000, set at 10% of the value exceeding that threshold, and a $5 fee on the retail sale of new replacement vehicle tires. The bill clarifies definitions related to motor vehicles and noncommercial aircraft, ensuring that taxes are based on selling price plus trade-in value. It also adjusts the deduction amount for motor vehicles to $100,000 for fiscal year 2026, with annual adjustments thereafter. The Department of Revenue is tasked with reconciling tire sales and revenue collection, and certain sections of the bill are set to take immediate effect to maintain public peace, health, or safety.

Statutes affected:
Original bill: 82.38.030, 82.08.817, 82.12.818, 82.08.9999, 82.48A.010, 82.48A.020, 70A.205.405