Committee forwards transportation revenue package after narrow 14-13 vote; bill would raise fuel and other transportation-related taxes

The House Transportation Committee voted 14-13 on April 23 to send engrossed Substitute Senate Bill 5801 (striker H-2311.3, as amended) out of committee with a "do pass as amended" recommendation. The package would raise multiple transportation-related taxes and fees, create a new road repair account, expand certain tax increment financing authority, and alter several transportation policies including tolling, project streamlining, and green-transportation provisions.

The package matters because it would change state transportation revenue and funding priorities, including significant fuel-tax adjustments, new and expanded sales- and use-tax applications for vehicles and recreational vessels, and programmatic changes with implications for ferries, safety, and local projects.

As presented to the committee, the striking amendment increases the motor-vehicle fuel tax rate by $0.06 per gallon beginning July 1, 2025; it also included additional $0.03-per-gallon increases on special fuel in 2025 and 2027 and a 2% annual inflation adjustment to the fuel tax rate. The striking amendment raises several other transportation-related taxes and fees, including vehicle weight fees and the rental-car tax, imposes…