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ESSB 5801

Signed

Senate

Transportation resources

Concerning transportation resources.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: March 26, 2025
Last Action: May 23, 2025
Status: C 417 L 25

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesBalancedCorporate & Wealthy Interests

This bill raises transportation revenue through increased fuel taxes, new fees on electric vehicles and luxury vehicles, higher rental car taxes, and other charges. It also implements a large event transportation assessment and requires transit agencies to pay an annual road use fee. Revenue will fund transportation projects through various dedicated accounts, with inflation adjustments beginning in 2026.

  • Increases the state fuel tax to 23 cents per gallon in 2025, with future annual inflation adjustments of 2%.
  • Imposes new annual fees on electric vehicles: $150 for battery-electric vehicles, $50 for plug-in hybrids, and $30 for electric motorcycles, with inflation adjustments starting in 2026.
  • Adds a 10% luxury vehicle tax on vehicles costing over $100,000, effective for purchases and leases starting January 1, 2026.
  • Increases rental car taxes to 11.9% in 2026 and 9.9% in 2027, with revenue split between multimodal and flexible transportation accounts.
  • Imposes a $5 per tire fee on new replacement tires and a $1 per attendee assessment on large events (20,000+ attendees).
  • Requires public transit agencies to pay a $4.5 million annual assessment to offset road use by their vehicles.
  • Adds a 3% credit card surcharge to ferry fares to recover transaction costs.
  • Increases driver's license and identicard fees to $80, with inflation adjustments starting in 2026.

Who is affected

  • Electric vehicle ownersDrivers of electric vehicles will pay new annual fees of $150 for battery-electric vehicles and $50 for electric motorcycles, plus an additional $75 or $100 depending on vehicle type, with fees increasing annually by inflation.
  • Vehicle buyersBuyers of new passenger vehicles priced over $100,000 will pay a 10% luxury vehicle tax on the amount over $100,000, and all vehicle buyers will pay higher service and filing fees starting in 2026.
  • Rental car and car sharing businessesRental car companies and peer-to-peer car sharing platforms will pay new taxes of up to 11.9% of rental fees, with revenue directed to transportation accounts.
  • Public transit agenciesPublic transit agencies and regional transit authorities will pay an annual $4.5 million assessment to help offset road use by their vehicles.
  • Ferry ridersFerry riders using credit cards will see a 3% surcharge added to fares to recover transaction costs.
Effective: Varies by section; most provisions take effect January 1, 2026, with some effective July 1, 2025 or immediately.Fiscal impact: The bill is expected to generate hundreds of millions of dollars in new revenue over the biennium through increased fuel taxes, electric vehicle fees, luxury vehicle taxes, rental car taxes, tire fees, and other new charges. Revenue will be directed to transportation accounts including the move ahead WA flexible account, multimodal transportation account, and motor vehicle fund.Sunset: Section 706 expires July 1, 2028; Section 506 expires January 1, 2026; speed safety camera provisions expire June 30, 2030.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:20 PM

Pro/Con Analysis

Potential Benefits (5)
  • The $5 per tire fee generates $4.75M annually for road maintenance, directly improving road safety and reducing vehicle operating costs for all drivers. The fee also funds tire cleanup in overburdened communities, reducing environmental health hazards like tire pile fires and leachate contamination—disproportionately affecting low-income and minority neighborhoods near landfills and industrial zones.

    EnvironmentPeopleRef: Sec. 211 (RCW 70A.205.425(2)(a))
  • The new county local road program prioritizes investments in overburdened communities, environmental health disparities, tribal lands, and pedestrian/bike safety—directly improving mobility and safety for vulnerable populations. The requirement for counties to spend all road revenues on road purposes (with exemptions for small counties) ensures local road funds are used for their intended purpose, reducing taxpayer waste.

    TransportationPeopleRef: Sec. 603 (new chapter in Title 36 RCW, §603(a)-(g))
  • The Sandy Williams connecting communities program requires $12.5M/year from 2027 to improve active transportation connectivity in overburdened communities, with explicit criteria for equity (low-income, minority, disability, environmental health disparities). This directly benefits non-drivers, seniors, youth, and people with disabilities who rely on walking, biking, or transit.

    TransportationPeopleRef: Sec. 611 (new section added to Title 47 RCW, §611(7))
  • Speed safety cameras in work zones generate $125–$248 fines, with revenue funding highway safety and training. While controversial, the cameras reduce speeding in high-risk work zones where worker and driver fatalities are elevated. The revenue stream supports long-term safety improvements, and the program includes civil rights safeguards and data reporting requirements.

    Public SafetyPeopleRef: Sec. 305 (RCW 46.63.200(9), (10))
  • Authorizing up to 16 hybrid diesel-electric ferry vessels with design credits for Washington-built vessels and apprenticeship compliance supports local manufacturing jobs and long-term operational cost savings through fuel efficiency and reduced maintenance. This improves ferry reliability and reduces emissions—benefiting ferry-dependent island and coastal communities.

    TransportationLean peopleRef: Sec. 716 (new ferry vessel procurement rules, §716(1)(a), (2)(a))
Potential Concerns (5)
  • The bill raises the state fuel tax to 23 cents per gallon in 2025 and adds annual 2% inflation adjustments, significantly increasing fuel costs for all drivers. While inflation adjustments are designed to preserve purchasing power, the base rate is already high and will compound over time, disproportionately affecting low- and middle-income households who spend a larger share of income on transportation.

    FinancialIndustryRef: Sec. 101 (RCW 82.38.030(1), (8), (9))
  • The bill imposes new annual fees on electric vehicles: $150 for BEVs, $50 for PHEVs, and $30 for electric motorcycles—fees that rise with inflation. Although intended to offset road wear, these fees penalize EV adoption, which the state has actively promoted as a climate policy. The fees are regressive: low- and middle-income EV owners (who often drive older, cheaper models) pay the same as wealthier owners of $100K+ vehicles, and the fees apply regardless of vehicle miles traveled or road use intensity.

    FinancialIndustryRef: Sec. 103 (RCW 46.17.323(1), (4), (5))
  • The 10% luxury vehicle tax on vehicles over $100,000 appears progressive on its face, but in practice it primarily benefits high-income households and corporations. The exemption for vehicles used “exclusively for a business purpose” (Sec. 201(4)(b)) allows wealthy business owners and S-corp shareholders to structure purchases through entities to avoid the tax. The $100,000 threshold is far above median household income ($86K in WA), meaning only the top 10% of earners (and many small businesses with high-end vehicles) will be affected—but the revenue loss from exemptions and avoidance offsets much of the intended progressivity.

    FinancialIndustryRef: Sec. 201 (RCW 82.08.020(4), (5))
  • Driver’s license and identicard fees rise from $72 to $80 (plus inflation adjustments), with no expanded exemptions for low-income residents beyond current limited categories. This increase burdens working families, seniors on fixed incomes, and people experiencing homelessness who rely on state-issued IDs for employment, housing, and access to services. The fee hike is not tied to actual cost of issuance and represents a regressive user fee.

    FinancialIndustryRef: Sec. 301 (RCW 46.20.161(1)(a))
  • Ten percent of driver’s license and identicard fee revenue (plus all inflation-adjusted portions) is directed to the move ahead WA flexible account, effectively diverting funds from general licensing operations. This creates a structural underfunding risk for licensing services, potentially leading to longer wait times, reduced service hours, and increased administrative burdens on local county auditors—disproportionately affecting rural and low-income residents with limited access to alternative service locations.

    FinancialIndustryRef: Sec. 304 (RCW 46.68.041(4), (5))

Who Is Most Affected

Low- and middle-income drivers and householdsNegative Impact

Low- and middle-income drivers face higher fuel, EV, and licensing fees without proportional benefit. They are less likely to own EVs or luxury vehicles but will pay more for fuel and ID renewals, straining household budgets. Rural residents are especially affected due to longer commutes and limited transit alternatives.

Electric vehicle ownersNegative Impact

EV owners pay new annual fees ($150 for BEVs) despite having adopted a cleaner vehicle. The fees are not calibrated to actual road use (e.g., miles driven), making them regressive. This undermines state climate goals by penalizing a key decarbonization strategy.

Rental car and car sharing businessesNegative Impact

Rental car companies and peer-to-peer platforms face new taxes (up to 11.9%) and administrative burdens. While some may pass costs to consumers, small operators and gig-economy drivers will bear disproportionate impact, potentially reducing affordable mobility options in underserved areas.

Public transit agencies and ridersNegative Impact

Transit agencies must pay $4.5M/year in road use assessments despite providing public service and reducing overall vehicle miles traveled. This diverts funds from service expansion or fare subsidies, potentially leading to service cuts or higher fares for riders—especially low-income and elderly riders who rely on transit.

Ferry-dependent communitiesMixed Impact

Ferry-dependent communities (e.g., San Juan Islands, Kitsap Peninsula) benefit from new hybrid ferry investments and improved terminal infrastructure, but face higher fares due to the 3% credit card surcharge and potential future toll increases. The net impact depends on whether efficiency gains offset fare hikes.