Senate boosts, inflation-proofs gas-tax

Plus new taxes on fancy cars and yachts, a TOD update, and some recommended reading and listening

A reminder that The Observer is gathering the movers and shakers in Olympia on Thursday, April 3 at The Heritage Room starting at 6 p.m. for a get-together involving tasty snacks, beverages—adult and otherwise—and, of course, a spicy debate on the budget and revenue situation. There’s still some space left if you haven’t signed up.

The big number in the Washington Senate’s transportation tax and fee package is a 6-cent increase in the gasoline tax, which would vault that levy over 50 cents per gallon. It would also index the tax to inflation for the first time, bumping it 2% per year in future years. 

As we noted last week, that’s a big deal because it’s mostly aimed at filling a yawning hole in the state’s existing transportation budget, not on a tasty new package of highway projects. Along with a slew of other new and increased taxes, it would raise about $500 million per year. The bill passed 31-18, and we’ll get back to the nuances of that vote in a bit. 

But first, a look at some of the other taxes in the bill, which cast a broad net for flexible transportation dollars. The state constitution generally restricts spending the gas tax on things other than the highway system, so transportation budget writers are frequently in the market for other sources of cash. Here’s a sampling:

Dinging the rich for their fanciest toys