Striking amendment to ESSB 5801 would raise $3.2 billion, change taxes and tolling, and add transit and ferry provisions; committee hears wide public reaction

Committee staff briefed the Washington State House Transportation Committee on a striking amendment to Engrossed Substitute Senate Bill 5801 that combines revenue changes with policy and programmatic revisions affecting ferries, transit, vehicle taxes and local road grants.

Michael Hirsch, staff to the committee, said the revenue package in the striking amendment would raise about $3,205,000,000 over six years. “Included in that revenue proposal is a 6¢ increase to the fuel tax rate, and that would increase by 2% each year,” Hirsch said. The amendment would likewise add a pair of 3¢ increases to the diesel (special-fuel) tax rate above gasoline and index those increases by 2% annually. Hirsch also described increases to vehicle weight fees, passenger-weight fees for heavier vehicles, an increase in the sales-and-use tax assessment on motor vehicles from 0.3% to 0.5%, expanded rental-car tax language and new luxury taxes on high-value noncommercial vehicles and aircraft.

Hirsch summarized other revenue proposals: an increase to the tire-replacement fee from $1 to $5, a new large-event facility transportation assessment of $1 per attendee at venues over 17,000 capacity, and a lower-tier increase to driver’s license and ID card fees. He said the striking amendment would impose a first-offense work-zone fine for “was dot” violations up to $125 beginning July 1, 2026, and add a credit-card surcharge on ferry riders. Hirsch also described a proposed change preventing the Transportation Commission from exempting public transit vehicles, vans and rideshare vehicles from certain bridge tolls.

Jennifer Harris, committee staff, reviewed nonrevenue policy changes in the striking amendment: expanded tolling authority across the SR 520 corridor, changes to shoreline permit project notification requirements, contractual adjustments to ferry procurement, and a strengthened biofuel/renewable-diesel transition mandate for Washington State Ferries. She said the amendment would add certain high-capacity and bus rapid transit improvements to the Growth Management Act definition of essential public facilities, narrow local governments’ ability to block siting of high-capacity transit improvements, and stipulate that transit agencies’ SEPA and NEPA documents serve as the sole applicable environmental review for transit projects.

Harris described a new county local-road grant program to be administered by the County Road Administration Board and the creation of the Sandy Williams Connecting Communities Program account with quarterly transfers totaling $12.5 million annually. The amendment would also temporarily exempt 0-emission buses purchased by transit agencies or federally recognized tribes from sales-and-use tax beginning July 1, 2025, with reversion triggers tied to total exemptions reaching $14 million.

Sandy Myers provided initial implementation and staffing estimates for revenue and administrative changes. She said the Department of Revenue expects to need about 6.2 FTEs and approximately $1.85 million in the 2025–27 biennium (including a one-time $308,000 IT cost), and ongoing costs of roughly $500,000 per biennium thereafter. The Department of Licensing listed estimated impacts of about 1.5 FTEs and $567,000 in 2025–27 for new programs such as indigent tow-truck reimbursements; the cost impact on tow-truck reimbursements was characterized as indeterminate.

Public testimony reflected broad stakeholder interest and sharp disagreement on parts of the amendment. Industry groups representing aviation and general aviation (AOPA; National Business Aviation Association), and legal and business aviation interests opposed aircraft- and luxury-vehicle tax provisions, warning of adverse effects on aviation training, jobs and business travel. Brad Schuster of the Aircraft Owners and Pilots Association called luxury taxes “a form of wealth tax” and urged deletion of the relevant sections. Stephanie Erickson, a partner at CenterPoint Aviation Law, said business aircraft are critical business tools and urged rejection of the aircraft provisions.

Other opponents included freight and petroleum representatives who opposed indexing and warned it would separate tax-setting from legislative budgeting. Greg Hannon of the Western States Petroleum Association said indexing would put increases on “automatic pilot” and remove legislative accountability. Several speakers representing event venues and professional sports organizations—Becky Bogard of the Seattle Sports Commission and Amber Carter of the Seattle Mariners—opposed the $1-per-attendee large-event assessment, calling it an additional burden that could deter events.

Supporters and advocates urged adoption of the revenue and program elements to fund preservation, ferry replacement and local roads. The County Road Administration Board’s executive director Jane Wall said the county local-road grant program is “a very big deal” and would invest in underserved regions and roads that traverse tribal lands. The Tacoma-Pierce County Chamber and the city of Fife testified in support of the substitute’s expenditures, including ferry and Gateway Project funding. Construction, engineering and labor groups urged stronger preservation funding for highways and local networks.

Several groups welcomed removal of an e-bike sales-tax provision from the striking amendment. Vicki Clark of Washington Bikes praised the bill sponsors for removing an e-bike tax and emphasized that e-bikes make active transportation accessible and can replace vehicle trips.

Committee staff closed the hearing and described amendment deadlines for members: requests for amendments to be submitted to staff by 1 p.m. on the day of the hearing and finalized for the electronic bill book by 6 p.m.

No committee action (motions or votes) on the striking amendment was recorded during this hearing; the session moved to caucuses afterward.