Dedicating the state sales tax on motor vehicles for transportation.

SB 5026 redirects a growing portion of Washington’s vehicle sales tax revenue to transportation funding. Starting in 2026, 16.66% of tax revenue from all new and used vehicle sales (including private-party sales) will fund transportation, increasing by 16.66% each year until 2031, when 100% will be dedicated to this purpose. The bill excludes certain vehicles like farm tractors, off-road vehicles, snowmobiles, and bicycles from this tax allocation. This policy change affects all vehicle buyers and sellers in Washington, with the tax revenue directly supporting transportation infrastructure projects.