SB 5801 Washington Senate · 2025-2026 Regular Session

Concerning transportation resources.

SB 5801 amends Washington's fuel tax structure to generate revenue for transportation infrastructure. Starting July 1, 2025, it adds a 6-cent-per-gallon tax on regular fuel and a 3-cent tax on special fuel (with an additional 3-cent tax on special fuel beginning July 1, 2027). The bill also mandates annual 2% increases to regular fuel tax rates starting July 1, 2026, and to special fuel rates starting July 1, 2028. These changes directly affect fuel licensees (businesses selling fuel) and will increase costs for consumers purchasing gasoline or special fuels. The legislation repeals outdated tax provisions and establishes new funding mechanisms to support state transportation system development.
Bill status signed all 5 stages cleared
Introduction
Mar 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Apr 2025
Signed into Law
May 2025
Introduced Mar 25, 2025 Signed May 23, 2025
Maddy AI version diff · 3 comparisons

What changed between versions

Engrossed Substitute Bill Substitute Passed Legislature · 17 edits
MAJOR
The House-passed version of SB 5801 made sweeping changes to the Senate's transportation funding bill: it removed electric vehicle registration fees and the electric bicycle surcharge, replaced the 10% luxury vehicle tax with an 8% tax (and dropped luxury taxes on motor homes and vessels), added new weight-based vehicle license fees, increased ferry vessel replacement surcharges from 25 to 75 cents, added a shared streets provision and expanded traffic camera authority, created zero-emission bus tax exemptions for transit agencies, and restructured the bill into 13 parts with significantly different revenue distribution targets.
FISCAL

Electric vehicle registration fees ($150 EV fee, $75 transportation electrification fee, $100 hybrid fee) were entirely removed from the bill. These fees had been a key mechanism for charging EV owners who don't pay fuel tax.

The 10% luxury vehicle sales and use tax on vehicles over $100,000 was replaced with an 8% additional tax (with the $100,000 threshold adjusted annually by 2%). Luxury taxes on motor homes and recreational vessels over $500,000 were dropped entirely; only the 10% luxury aircraft tax on noncommercial aircraft over $500,000 was retained.

The electric bicycle surcharge (10% of selling price on new e-bikes) and the large event transportation assessment ($1 per attendee at venues with 20,000+ attendees) were both removed from the bill.

New weight-based vehicle license fees were added. Commercial vehicles over 10,000 pounds face significantly higher registration fees (e.g., a 40,000-pound vehicle goes from $499 to $521.75 in Schedule A), plus a 15% freight project fee on top. Passenger vehicles get new weight-based fees starting January 2026 ($35-$96 depending on weight) with further increases in 2029.

The fuel tax inflation adjustment was restructured: instead of a single annual 2% increase starting July 2026, regular fuel gets a 2% annual increase starting July 2026 and special fuel (diesel) gets separate 3-cent increases in 2025 and 2027 plus its own 2% annual increase starting July 2028. New fuel tax revenue now goes to cities (2.5%), counties (2.5%), and the motor vehicle fund, rather than the 'move ahead WA account.'

The ferry vessel replacement surcharge was increased from 25 cents to 75 cents per fare, with scheduled increases to 85 cents (October 2027) and 95 cents (October 2029). Ferry vessel procurement was changed from 'up to five' 144-car vessels to 'five or more' 160-vehicle vessels.

Driver's license fees were restructured: instead of a flat $80 with annual 2% inflation increases starting 2026, the fee is now $10 per year with a $1-per-year increase every three years starting July 2028. This makes long-term cost growth more predictable and slower.

Revenue from most new taxes and fees in the bill was redirected from the 'move ahead WA flexible account' to the 'multimodal transportation account' (RCW 47.66.070), changing which programs benefit from the revenue.

SCOPE

A new 'shared streets' provision allows local governments to designate nonarterial highways as shared streets where pedestrians and bicyclists have right-of-way over vehicles, with requirements for annual safety reporting. State highways can only be designated if they are primary roads through a central business district and with WSDOT approval.

The public-private partnership (P3) chapter was modified to: exclude rail projects from eligibility, add an exception allowing P3 evaluation for any non-interstate US route project involving replacement of a seismically vulnerable elevated structure at least 1.5 miles long crossing a river (appears targeted at the I-5 Seattle bridge), require best value agreements to be approved by enacted legislation, and explicitly apply prevailing wage and apprenticeship requirements to entire P3 projects.

The provision reducing the Transportation Commission from 7 to 5 voting members was removed, as were the transit safety and security grant program and the statewide active transportation connectivity infrastructure grant program.

ELIGIBILITY

New zero-emission bus tax exemption: sales tax does not apply to zero-emission buses purchased by transit agencies or federally recognized Indian tribes for public transportation. The exemption is capped at $14 million in total state tax exemptions, funded from the carbon emissions reduction account.

Public transportation benefit areas (PTBAs) that are not in full compliance with RCW 36.57A.050 by October 1, 2025 lose eligibility for state transportation grants. A new annexation method also allows PTBAs to annex adjacent cities operating their own transit systems via interlocal agreement.

ENFORCEMENT

Automated traffic safety camera authority was expanded to include: public transportation only lane violations, ferry queue violations, and cameras in bus rapid transit corridors. Cities with populations over 500,000 can now use cameras for stopping-when-traffic-obstructed and restricted lane violations at additional locations including midblock arterials.

REQUIREMENT

A new tow truck impound program requires the Department of Licensing to compensate registered tow operators when indigent vehicle owners cannot pay for private property or law-enforcement-directed impounds (excluding post-arrest impounds). Operators can claim payment from excess unclaimed impound funds.

SR 520 tolling: the restriction limiting tolls to only the floating bridge portion was removed, and a new requirement was added that ramp and segment tolling can only begin after completion of level three traffic, revenue, and environmental analyses funded in the 2025-2027 omnibus transportation appropriations act.

A new 'solicited property transactions' provision gives property owners the right to a buyer-paid appraisal and the right to cancel without penalty within 4 business days of receiving the appraisal (or 10 days if they skip the appraisal) when a buyer actively solicits the purchase through advertising or direct contact. Does not apply to broker-represented transactions or public entities acquiring for transportation purposes.

Floor votes · Senate Mar 29, 2025 · House Apr 24, 2025

How they voted

3219
Passed
Total votes 51
Mar 29, 2025
D Democratic31
27 Yea 4 Nay
87% Yea
R Republican20
5 Yea 15 Nay
75% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
32
Key actions
17
Committee
11
May 20, 2025
Signed into law
Governor signed.
executive
Apr 26, 2025
Lower · Passed
Speaker signed.
lower
Apr 26, 2025
Upper · Passed
President signed.
upper
Apr 25, 2025
Upper · Passed
Passed final passage; yeas, 31; nays, 17; absent, 0; excused, 0.
upper
Apr 25, 2025
Upper · Passed
Senate concurred in House amendments.
upper
Apr 24, 2025
Lower · Passed
Committee amendment(s) adopted as amended.
lower
Apr 24, 2025
House · Passed
House Vote: pass (52-48)
house
Apr 23, 2025
Committee
Referred to Rules 2 Review.
lower
Apr 23, 2025
Lower · Passed
Minority; without recommendation.
lower
Apr 23, 2025
Lower · Passed
Minority; do not pass.
lower
Apr 23, 2025
Lower · Passed
TR - Majority; do pass with amendment(s).
lower
Apr 23, 2025
Lower · Passed
Executive action taken in the House Committee on Transportation at 9:00 AM.
lower
Apr 22, 2025
Lower · Passed
Public hearing in the House Committee on Transportation at 9:00 AM.
lower
Mar 29, 2025
Upper · Passed
Floor amendment(s) adopted.
upper
Mar 27, 2025
Upper · Passed
Minority; without recommendation.
upper
Mar 27, 2025
Upper · Passed
Minority; do not pass.
upper
Mar 27, 2025
Upper · Passed
Executive action taken in the Senate Committee on Transportation at 4:00 PM.
upper
Mar 25, 2025
Upper · Passed
Public hearing in the Senate Committee on Transportation at 4:00 PM.
upper
1 primary · 2 co-sponsors

Sponsors