2SSB 5802
SignedSenate
Transportation funds
Rebalancing statutory fund transfers and revenue dedications for transportation.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill restructures how Washington State directs transportation-related revenue by adjusting annual transfers between key accounts, creating new dedicated funding streams, and updating tax deposit rules. It redirects money from the general fund, public works account, and taxes on petroleum, vehicles, and rentals into transportation and public works programs—including stormwater, multimodal transit, and bridge operations—over a multi-year timeline.
- Revises annual transfers from the general fund to the connecting Washington account, reducing amounts in later years (e.g., $11.7M quarterly in 2025–27, down to $4.1M in 2029–31), and adds $57M/year to the move ahead WA flexible account for 2024–25.
- Requires quarterly transfers of $57M from the public works assistance account to the move ahead WA account for fiscal years 2024 and 2025 to support public works projects.
- Establishes the Tacoma Narrows toll bridge account with deposits from bond proceeds, tolls, and $130M in general fund transfers (ending July 1, 2025), with strict rules on how funds can be used.
- Adjusts the hazardous substance tax on petroleum products, redirecting $50M biennially to the motor vehicle fund for transportation stormwater projects through 2027, and changes deposit allocations to other model toxics accounts.
- Adds a 0.3% retail sales and use tax portion (starting July 1, 2027) dedicated to the multimodal transportation account, and keeps existing car rental and vehicle sales tax portions in that account.
Who is affected
- Local governments — Local governments receive increased access to loans, grants, and financial guarantees for public works projects (e.g., water infrastructure, broadband, utility relocation), and may receive additional funding for specific programs like fish barrier removal evaluations and data mapping tools.
- State transportation agencies — State transportation agencies (e.g., WSDOT) manage new funding flows into accounts like the connecting Washington account and move ahead WA account, and must follow new reporting and expenditure rules for the Tacoma Narrows toll bridge account.
- Businesses (especially auto dealers, petroleum producers, car rental companies) — Businesses that sell or lease motor vehicles, hazardous substances (e.g., petroleum), or rent cars will collect and remit new or adjusted taxes, with some revenue directed to transportation programs.
- General public — Residents benefit from improved transportation infrastructure, stormwater management, and public works projects (e.g., clean water, broadband), and may see changes in vehicle-related taxes and tolling.
Pro/Con Analysis
Potential Benefits (4)
Increases annual transfers to the Move Ahead WA Flexible Account from $31M to $57M for 2024–25 — a $26M/year increase — to support multimodal and public works projects. This expands funding for bus lanes, bike infrastructure, and local transit, directly benefiting everyday commuters, especially in underserved areas lacking car access.
TransportationPeopleRef: Sec. 1(5); RCW 46.68.520Maintains $57M/year in transfers from the Public Works Assistance Account to the Move Ahead WA account for 2024–25, enabling local governments to access loans, grants, and financial guarantees for water, broadband, and utility relocation — critical for rural and small-town infrastructure resilience.
Local GovernmentPeopleRef: Sec. 2(2); RCW 43.155.050Dedicates $50M biennially to transportation stormwater projects (e.g., stormwater treatment, flood mitigation), reducing pollution in Puget Sound and improving water quality — a public health and environmental benefit for all residents, especially those near vulnerable waterways.
EnvironmentPeopleRef: Sec. 4(1)(c); RCW 82.21.030Creates the Tacoma Narrows Toll Bridge Account with $130M in general fund transfers (through 2025) and toll revenue, ensuring dedicated funding for bridge maintenance, repairs, and safety upgrades — critical for a high-traffic, geologically vulnerable crossing.
Public SafetyLean peopleRef: Sec. 3; RCW 47.56.165
Potential Concerns (4)
Reduces annual general fund transfers to the Connecting Washington account from $13.987M quarterly in 2023–25 to $4.056M quarterly in 2029–31 — a $10.2M quarterly (≈$40.8M/year) reduction in dedicated transportation funding over time. This weakens long-term infrastructure investment capacity and increases pressure on other accounts to fill the gap, potentially delaying road/bridge maintenance and safety upgrades.
FinancialIndustryRef: Sec. 1(2), (3), (4); RCW 46.68.395Redirects $57M/year from the Public Works Assistance Account to the Move Ahead WA account for 2024–25. While this supports multimodal projects, it reduces flexible local funding for water infrastructure, broadband, and rural economic development — services many small and rural communities rely on. The bill does not replace this funding elsewhere, disproportionately affecting smaller local governments with fewer alternative revenue sources.
Local GovernmentIndustryRef: Sec. 2(2); RCW 43.155.050Diverts $50M biennially from the Hazardous Substance Tax on petroleum to the motor vehicle fund for stormwater projects. While this funds stormwater improvements, it reduces the Model Toxics Control Operating and Capital accounts — which have a statutory mandate to clean up contaminated sites and prevent toxic releases — potentially slowing cleanup of Superfund sites and industrial pollution in frontline communities.
EnvironmentIndustryRef: Sec. 4(1)(c); RCW 82.21.030Adds a 0.3% retail sales tax portion (starting 2027) and a 0.3% use tax portion (same start date) dedicated to the multimodal transportation account. Though modest, this new tax applies broadly to all retail purchases — including groceries, clothing, and household goods — and disproportionately affects low- and middle-income households, who spend a larger share of income on taxable goods.
FinancialIndustryRef: Sec. 5(6), Sec. 6(5); RCW 82.08.020(6), RCW 82.12.020(5)
Who Is Most Affected
Low- and middle-income households face higher effective tax burden due to the new 0.3% sales/use tax on everyday goods (e.g., groceries, clothing), which consumes a larger share of their income than for high-income households. While multimodal projects may improve transit access, the tax regresses against their budget stability.
Rural and small-town local governments lose $57M/year from the Public Works Assistance Account for flexible infrastructure loans/grants — a key tool for water, broadband, and economic development — while gaining only indirect access to multimodal funds, worsening regional equity gaps.
State transportation agencies (e.g., WSDOT) gain more predictable multimodal and stormwater funding, enabling long-term planning and project execution — especially for bridge maintenance and transit expansion — but face added reporting burdens for the Tacoma Narrows account.
Petroleum producers and retailers face unchanged or slightly increased compliance costs (e.g., reporting for the hazardous substance tax), but the $50M biennial diversion from Model Toxics accounts may reduce cleanup of contaminated sites near their facilities, increasing long-term liability risk.
Car rental companies and auto dealers face no new tax rates, but the 0.3% retail sales tax portion and existing vehicle sales tax (0.3%) are now explicitly dedicated to multimodal transport — potentially increasing administrative tracking but also supporting alternatives to car dependency.