As gas tax revenue drops, Washington lawmakers mull pay-by-mile program for drivers
Washington’s gas tax would be replaced with a road usage charge under a bill that received a hearing on Feb. 18.
For drivers, the change would translate to a charge of 2.6 cents per mile.
State Sen. Bill Ramos, an Issaquah Democrat, noted in the Senate Transportation Committee that the state’s gas-tax revenue has been dwindling as more drivers are opting to buy hybrid and electric vehicles.
Senate Bill 5726 aims to maintain a revenue stream to sustain the state’s transportation infrastructure in the long term.
Gas taxes have been around for about a century and have worked well until the last 20 or so years, Ramos told the committee Feb. 18. These days they’re on the decline.
“It has been a quasi user fee for 100 years, right? The more gas you buy, the more you pay,” he said. “And if we let that just die a natural death, then we’re going to have to go somewhere else to get revenue to pay for transportation.”
Supporters say that switching to a road usage charge system, or RUC, would boost equitability while helping to mend the mounting revenue problem. Detractors argue that it would hurt already overburdened taxpayers and be tricky to implement.
Gas taxes make up more than a third of the Washington transportation budget with $1.3 billion generated each year, as noted in a news release announcing the Feb. 18 hearing. At the same time, many of the state’s bridges and roads are in rough shape because of a backlog of preservation and maintenance projects.
In addition, by 2050, revenue from Washington’s gas tax is expected to fall by more than 70%.
Four other states have enacted RUC programs: Oregon, Virginia, Utah and Hawaii, according to a PowerPoint delivered at the Feb. 18 meeting.
The presentation showed that a driver of a 2009 Toyota Camry logging 25 miles per gallon pays $198 in state fuel taxes. Meanwhile, someone operating a 2023 Toyota Camry hybrid with 52 MPG owes $95.
Lower-income residents are more likely to drive cars with lower fuel-efficiency, according to the PowerPoint. They would pay less under an RUC system.
The bill would phase in RUC over the next 10 years, starting with passenger vehicles:
Phase 1, from 2027 to 2029: Voluntary for hybrid and electric vehicle drivers, taking place of the current flat fee.
Phase 2, from 2029 to 2031: Mandatory for hybrid and electric vehicle drivers and voluntary for fuel-efficient gas cars with 20-plus miles per gallon.
Phase 3, from 2031 to 2035: Gradual phase-in for all vehicles that are gas-powered.
The RUC rate would start at 2.6 cents each mile and could be recalibrated to match gas tax revenue, according to a news release. Drivers would report their own odometer mileage readings.
Ramos noted that this proposal would amount to a gas-tax replacement, not a double cost: “Many folks think we’re going to have gas tax and road usage charge; it’ll be one or the other.”
Support and criticism of SB 5726
Leah Missik with the nonprofit Climate Solutions spoke in support of SB 5726. She said the bill is a step in the right direction toward modernizing the state’s transportation system. However, her organization hopes that the legislation would not have the unintended effect of promoting the use of low-efficiency gas vehicles.
“We would also like if the bill included an assessment of approaches for offering a low-income discount,” Missik said. “This bill is an opportunity to fund transportation more progressively and equitably.”
Jane Wall, executive director of the Washington State County Road Administration Board, also backed SB 5726. She said decreased gas taxes without a replacement revenue stream could lead preservation and maintenance programs, including at her organization, to lose most of their revenue.
Debbie Young, chair of the Washington State Transportation Commission, said the bill would help ensure reliable funding for the state’s transportation system in the future.
“We believe it’s crucial that you act now to shore up transportation funding and to stop the continued erosion of the gas tax revenues,” Young said.
Others strongly opposed the bill.
John Peeples argued that there is already a road-usage charge with the current gas tax, and that EV drivers should be allowed to pay an electric-charge tax at the pump: “We do not have a revenue crisis, only a spending problem.”
The Washington Senate Republicans posted on X Feb. 13 that the companion bill, House Bill 1921, saw 214 people sign in “pro” at its hearing and 19,836 others sign in “con.” Senate Republican Leader John Braun of Centralia said during a Feb. 18 media availability that the idea isn’t realistic, adding that it’s not well-supported on either side of the aisle.
“It’s regressive,” he said. “It’s very hard on rural communities where you likely have to drive further.”
Initiative activist Tim Eyman slammed the measure, referencing tax hikes over the past several legislative sessions.
“There’s simply no way it’s believable to an average taxpayer that this thing is not going to continue to go up and up and up,” Eyman said at the Feb. 18 hearing. “Don’t open up this Pandora’s box. It’s hated. It’s despised. There is simply white-hot opposition.”
This story was originally published February 19, 2025 at 3:28 PM.
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