Highway robbery: Transportation tax increases

House Bill 2043 is a costly transportation tax plan that would raise an estimated $4.4 billion over six years—by increasing fees and taxes on drivers, working families, and small businesses already struggling with high costs.

Here are the tax proposals included in the bill:

Highway User Fee (HUF)

• Applies to vehicles with 25 miles-per-gallon (mpg) or higher fuel efficiency.
• Excludes electric and plug-in hybrid vehicles, motorcycles, low-speed vehicles, and vehicles over 10,000 pounds.
• Replaces the existing $75 hybrid vehicle registration fee.
• New HUF charge: a range from 0 to $141.50.

Fuel taxes

• Gasoline: 9-cent per gallon increase starting July 1, 2025, with automatic annual inflation adjustments.
• Diesel, Propane, and Biodiesel: 12-cent increase on July 1, 2025, plus an additional 3-cent hike on July 1, 2027.

Vehicle registration fees

Here's one example of the new charges added to existing base registration fees. Many vehicles will pay more:

• $4.50 new registration fee
• $10 weight fee
• $31.44 Highway User Fee (if applicable)
• Total: $124.19 for a standard passenger vehicle (up from $78.25)

Passenger vehicle weight fee increases

• 0–4,000 lbs: $10 increase
• 4,001–6,000 lbs: $20 increase
• 6,001–8,000 lbs: $17.50 increase
• 16,000+ lbs: $24 increase

Tire fee

• $4 per tire increase on the existing $1 replacement tire fee

Vehicle sales tax

• 1% increase on the first $50,000 of a vehicle’s value
• 2% increase on the portion between $50,001–$100,000
• 3% increase on the value over $100,000

Ferries

• Credit card processing fees for ferry ticket purchases
• Capital vessel surcharge increases from 25 cents to 75 cents
• Between 2026 and 2031, ferry fares will increase by an additional 1.5% annually (on top of the existing 2.5% annual increase), totaling 4% annually

Review all these taxes here.

Why these taxes bad for Washington:

Failure of Past Plans: The Move Ahead Washington and Connecting Washington transportation packages failed to meet revenue goals and doubled project costs. Taxpayers are now expected to plug a $1 billion transportation deficit—without any reform or accountability. More taxes without fixing inefficiencies will only deepen public distrust.

Regressive taxes hurt working families: Washington already has the third-highest gas prices in the nation. The new taxes—on fuel, vehicles, and tires—hit working families and small businesses the hardest. Rural roads and bridges remain neglected while urban transit and bike lanes get priority funding.

Failing infrastructure, despite high taxes: Sixty percent of state roads need maintenance, and over 10% of bridges will be in poor condition by 2026. Funding continues to be siphoned to non-essential projects like electric buses and bike paths. We need to prioritize repairs and safety, not window-dressing.

Ferry mismanagement and cost overruns: Hybrid-electric ferries are estimated to cost twice as much as diesel vessels—far above the $150 million paid for the last ferry. Clean diesel alternatives could deliver reliable service at just $5 million per ferry. Cost-effective, practical solutions should be prioritized for ferry-dependent communities.

Harmful to businesses and agriculture: The added costs on diesel, tires, registration, and freight will hurt agriculture, manufacturing, and small businesses. We need policies that promote economic growth, not crush it with rising transportation costs.