HB 2711: Concerning transportation resources. - Washington

Engrossed Substitute Bill → Substitute Passed Legislature · 9 edits

MAJOR

This bill significantly restructures Washington's transportation funding by introducing new sales and use taxes on luxury vehicles, recreational vessels, and peer-to-peer car sharing, while simultaneously repealing the luxury aircraft tax. It also clarifies how funds are distributed from fuel taxes and establishes a new account for sustainable aviation fuel infrastructure. The legislation includes administrative updates regarding aircraft registration fees, older driver identification cards, and public transit grants.

Scope change

The bill expands the scope of taxation to include peer-to-peer car sharing and recreational vessels, while removing the tax on luxury aircraft. It also broadens the applicability of certain tax provisions to include digital goods and services.

FISCAL

New taxes were added on luxury vehicles (over $100,000), recreational vessels, and peer-to-peer car sharing, with revenues directed to the multimodal transportation account.

The luxury aircraft tax and associated use tax for high-value aircraft were repealed and removed from the tax code.

Aircraft fuel excise tax rates were increased from 18 cents to 25 cents per gallon, with revenue split between the aeronautics account and a new sustainable aviation fuel infrastructure account.

A new sustainable aviation fuel airport infrastructure account was created to receive 28% of aircraft fuel excise tax revenue.

TIMELINE

Effective dates for various tax provisions were adjusted, with some luxury vehicle taxes taking effect July 1, 2026, and others delayed to 2027 or 2028.

ELIGIBILITY

A reduced fee program for older drivers (age 70+) to obtain an identicard was added, limiting eligibility to one issuance per person.

REQUIREMENT

Aircraft registration fees were increased from $15 to $30, and the fee schedule was expanded to include various types of fixed-wing aircraft and helicopters.

Tire disposal fees were clarified to require sellers to retain a specific amount from the $5 per tire fee paid by buyers.

Washington State Ferries are now required to implement cost recovery mechanisms to recoup at least 3% of transaction costs from credit and debit card payments.

Substitute Bill → Engrossed Substitute Bill · 5 edits · Mar 11, 2026

MODERATE

The bill was updated from a 'Substitute' to an 'Engrossed Substitute' version, reflecting legislative amendments. Key substantive changes include the addition of a new Bus and Bus Facilities Grant Program focused on environmental justice and geographic diversity, the creation of a reduced-fee driver's license program for seniors aged 70 and older, and significant modifications to toll collection rules to include mitigating circumstances for late payments and expanded privacy protections for photo toll data.

Scope change

The bill's scope expanded to include new funding mechanisms for public transit and a specific program for senior drivers, while also broadening the applicability of toll enforcement rules to include more flexible payment options and updated privacy standards.

FISCAL

Added a new Bus and Bus Facilities Grant Program to support transit rolling stock, facilities, and safety enhancements, with specific requirements to prioritize environmental justice and geographic diversity in grant selection.

ELIGIBILITY

Created a new program offering a reduced $5 fee for identicards for drivers aged 70 and older who voluntarily replace their standard licenses.

REQUIREMENT

Modified toll collection rules to allow civil penalties to be reduced or dismissed based on mitigating circumstances such as hospitalization, military deployment, eviction, or homelessness.

ENFORCEMENT

Updated photo toll enforcement procedures to include stricter privacy rules, limiting the use of vehicle images solely for toll collection and requiring specific outreach before activating new electronic systems.

TIMELINE

Adjusted specific dates in the toll collection section, changing references from 2016 and 2013 to 80 days, indicating a shift in the timeline for penalty assessments and system updates.

Bill → Substitute Bill · 9 edits

MAJOR

This bill significantly expands Washington's transportation tax base by adding taxes on recreational vessels, peer-to-peer car sharing, and luxury vehicles, while repealing the luxury aircraft tax. It also creates a new 'Preserve Washington' account for highway maintenance and adjusts how certain state funds receive interest earnings. The changes aim to generate more revenue for transportation infrastructure and preserve existing roads.

Scope change

The bill broadens the scope of taxable items to include recreational vessels and peer-to-peer car sharing, while removing the tax on luxury aircraft. It also adds new definitions for 'peer-to-peer car sharing' and expands the list of exempt vehicles for the luxury vehicle tax to include motor homes through 2026.

SCOPE

Added a new tax on recreational vessels sold or leased in Washington.

Added a tax on peer-to-peer car sharing transactions where the vehicle owner obtained the car for resale purposes.

Removed the luxury tax on noncommercial aircraft (previously taxed at 10% for vehicles over $500,000).

ELIGIBILITY

Modified the luxury vehicle tax to exempt motor homes through December 31, 2026.

FISCAL

Created a new 'Preserve Washington' account within the motor vehicle fund to be used exclusively for highway preservation and maintenance.

Modified how interest earnings from the state treasury are distributed, explicitly adding the 'Preserve Washington' account to the list of funds that receive a proportionate share of earnings.

TIMELINE

Extended the effective date for several major tax provisions from April 1, 2026, to July 1, 2026.

Added expiration dates for various sections of the bill, with most expiring between 2028 and 2029.

REQUIREMENT

Added a requirement for peer-to-peer car sharing programs to obtain and maintain electronic certifications from vehicle owners regarding resale permits.

Concerning transportation resources.

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