Committee advances PSHB 2711 after contentious amendments on trade‑in treatment and tax changes
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Summary
Proposed substitute House Bill 2711 — a transportation resources package that changes fuel tax treatment, luxury vehicle and recreational vessel tax bases, and creates the Preserve Washington account — was reported out of committee 27–1 with one excused after adoption of technical fixes and several contested amendments.
The House Transportation Committee on Feb. 25 reported proposed substitute House Bill 2711 out of committee with a due‑pass recommendation after adopting technical corrections and debating several contested amendments.
Staff described PSHB 2711 as a comprehensive transportation resources bill that aggregates and distributes inflation‑attributable fuel tax receipts, modifies the tax base for certain luxury taxes so trade‑in value cannot be deducted (in the underlying bill), postpones a tow‑truck reimbursement program to 07/01/2027, discontinues some clean alternative fuel vehicle reporting requirements for the Department of Revenue, and sets a 25‑cent per‑tire retailer retention from tire fee proceeds. The proposed substitute also repeals the luxury aircraft tax and establishes the Preserve Washington account as an appropriated account dedicated to highway preservation and maintenance.
Representative Orcutt moved MATM669 to reinstate the trade‑in deduction for certain vehicle and vessel taxes, arguing it would align treatment with automobiles and preserve parity for dealers. "This amendment would basically say, yes, the trade in allowance is deducted," Orcutt said. The sponsor and others asked members to vote no, saying the enacted intent last year was to apply the tax to the full vehicle value. MatM669 failed on division.
Committee members adopted technical amendment MATM665 (correcting timing for dealer penalty relief) and other amendments, including a temporary motor‑home exemption (HAGE481) from 07/01/2026 through 12/31/2026 and a change to retain interest earnings in specified toll/bond accounts (HAJE483). Staff said treating the sales and use tax base consistently across vehicle categories and providing administrative timing fixes were reasons for the amendments.
Representative Dent praised the collaborative work to address aircraft‑industry concerns included in the substitute: "While this substitute may not be perfect... I really believe this is a good solution we put together," Dent said. Members also highlighted Climate Commitment Act investments and multimodal project funding that the bill would support; staff estimated about $4,000,000 annually to the multimodal transportation account and an approximate $4,000,000 annual reduction to the Sustainable Aviation Fuel account tied to the proposed repeal of the luxury aircraft tax. One amendment sponsor cautioned that reinstating trade‑in deductions could reduce revenue by roughly $10,000,000 per year.
After roll call, the clerk announced 27 ayes, 1 nay, 1 excused, 0 absent and PSHB 2711 was moved out of committee with a due‑pass recommendation.
