House Bill 1921 proposes to modernize how we fund our transportation system in Washington, by replacing the per gallon gas tax with a pay by mile system. The reason this change is needed is because fuel efficiency of cars continues to grow, leading to a decline in gas tax revenues, putting our roads and bridges at risk.
The lack of fairness is another reason to make this change. We all pay the gas tax, and the more we fill up the more we pay, especially for rural drivers. But unlike the road usage charge where all drivers will pay the same per mile rate, we don’t pay the same price under the gas tax:
- Drivers of the lowest MPG cars pay over 4 cents per mile today in gas taxes, while the most fuel-efficient cars pay less than 1 cent per mile.
- EVs pay a flat fee of $225 per year, and hybrid vehicles which pay some gas tax, pay a flat fee of $75 per year.
There is no double taxation. The legislation requires gas taxes paid at the pump be automatically credited toward road usage charges, and the EV and hybrid fees are waived. And, to address growing multi-modal transportation needs, the legislation proposes a 10% assessment on net RUC charges to support important investments in our state’s rail, bike, pedestrian, and public transportation infrastructure.
An example of what this means in real costs for a car that gets 25 MPG, after gas tax credits are automatically applied:
- For every 1,000 miles driven: $6 in RUC plus 60 cents for the transportation assessment.
OR
- For every 10,000 miles driven: $60 in RUC plus $6 for the transportation assessment.
Key provisions of the legislation include:
- Strong privacy protections – no driving or location data is collected: Drivers will provide their odometer reading during tab renewal, providing the strongest privacy protection possible.
- Taking it slow: It will take a decade before most drivers see RUC on their vehicle tab renewal.
- Fuel tax credits: Vehicles paying RUC will automatically get credit for all gas taxes paid. No recordkeeping is required. The credit is applied toward RUC owed at tab renewal.
- Low cost of administration: By keeping RUC simple, the cost of administration is similar to that of other vehicle licensing fees. HB 1921 establishes a fair, simple, efficient way to fund our transportation system for decades to come. It ensures all drivers pay for what they use, regardless of the kind of fuel they burn or how often they have to fill up. It is a true user fee, offering greater fairness than the current gas tax, for all drivers in Washington.
HB 1921 establishes a fair, simple, efficient way to fund our transportation system for decades to come. It ensures all drivers pay for what they use, regardless of the kind of fuel they burn or how often they have to fill up. It is a true user fee, offering greater fairness than the current gas tax, for all drivers in Washington.