Transportation funds

AN ACT Relating to rebalancing statutory fund transfers and 1
revenue dedications for transportation; amending RCW 82.32.385, 2
47.56.165, 82.21.030, 82.08.020, and 82.12.020; reenacting and 3
amending RCW 43.155.050; providing an effective date; and declaring 4
an emergency. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 82.32.385 and 2022 c 182 s 301 are each amended to 7
read as follows: 8
(1) ((Beginning September 2019 and ending December 2019, by the 9
last day of September and December, the state treasurer must transfer 10
from the general fund to the connecting Washington account created in 11
RCW 46.68.395 $13,680,000.12
(2) Beginning March 2020 and ending June 2021, by the last day of 13
September, December, March, and June of each year, the state 14
treasurer must transfer from the general fund to the multimodal 15
transportation account created in RCW 47.66.070 $13,680,000.16
(3) Beginning September 2021 and ending June 2023, by the last 17
day of September, December, March, and June of each year, the state 18
treasurer must transfer from the general fund to the connecting 19
Washington account created in RCW 46.68.395 $13,805,000.20
S-2333.6
SENATE BILL 5802
State of Washington 69th Legislature 2025 Regular Session
By Senators Liias and King
Read first time 03/28/25. Referred to Committee on Transportation.
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(4))) Beginning September 2023 and ending June 2025, by the last 1
day of September, December, March, and June of each year, the state 2
treasurer must transfer from the general fund to the connecting 3
Washington account created in RCW 46.68.395 $13,987,000.4
(((5))) (2) Beginning September 2025 and ending June 2027, by the 5
last day of September, December, March, and June of each year, the 6
state treasurer must transfer from the general fund to the connecting 7
Washington account created in RCW 46.68.395 $11,658,000.8
(((6))) (3) Beginning September 2027 and ending June 2029, by the 9
last day of September, December, March, and June of each year, the 10
state treasurer must transfer from the general fund to the connecting 11
Washington account created in RCW 46.68.395 $7,564,000.12
(((7))) (4) Beginning September 2029 and ending June 2031, by the 13
last day of September, December, March, and June of each year, the 14
state treasurer must transfer from the general fund to the connecting 15
Washington account created in RCW 46.68.395 $4,056,000.16
(((8))) (5) For fiscal year 2026 through fiscal year 2038, the 17
state treasurer must transfer from the general fund to the move ahead 18
WA flexible account created in RCW 46.68.520 $31,000,000 each fiscal 19
year in four equal quarterly transfers. This amount represents the 20
estimated state sales and use tax generated from new transportation 21
projects and activities funded as a result of chapter 182, Laws of 22
2022. 23
(((9))) (6) For fiscal year 2024 ((through fiscal year 2038 )) and 24
2025, the state treasurer must transfer from the general fund to the 25
move ahead WA flexible account created in RCW 46.68.520 $57,000,000 26
each fiscal year in four equal quarterly transfers.27
Sec. 2. RCW 43.155.050 and 2023 c 475 s 932 and 2023 c 474 s 28
8037 are each reenacted and amended to read as follows:29
(1) The public works assistance account is hereby established in 30
the state treasury. Money may be placed in the public works 31
assistance account from the proceeds of bonds when authorized by the 32
legislature or from any other lawful source. Money in the public 33
works assistance account shall be used to make loans and grants and 34
to give financial guarantees to local governments for public works 35
projects. Moneys in the account may also be appropriated or 36
transferred to the water pollution control revolving fund and the 37
drinking water assistance account to provide for state match 38
requirements under federal law. Moneys in the account may be 39
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transferred to the move ahead WA account to provide support of public 1
works projects funded in the move ahead WA program. Not more than 20 2
percent of the biennial capital budget appropriation to the public 3
works board from this account may be expended or obligated for 4
preconstruction loans and grants, emergency loans and grants, or 5
loans and grants for capital facility planning under this chapter. 6
Not more than 10 percent of the biennial capital budget appropriation 7
to the public works board from this account may be expended or 8
obligated as grants for preconstruction, emergency, capital facility 9
planning, and construction projects. During the 2017-2019 and 10
2019-2021 fiscal biennia, the legislature may appropriate moneys from 11
the account for activities related to rural economic development, the 12
growth management act, the aviation revitalization loan program, the 13
community economic revitalization board broadband program, and the 14
voluntary stewardship program. During the 2021-2023 and 2023-2025 15
fiscal biennia, the legislature may appropriate moneys from the 16
account for activities related to the community aviation 17
revitalization board. During the 2019-2021 fiscal biennia, the 18
legislature may direct the state treasurer to make transfers of 19
moneys in the public works assistance account to the education legacy 20
trust account. During the 2019-2021 and 2021-2023 fiscal biennia, the 21
legislature may direct the state treasurer to make transfers of 22
moneys in the public works assistance account to the statewide 23
broadband account. The legislature may appropriate moneys from the 24
public works assistance account for activities related to the 25
voluntary stewardship program, rural economic development, and the 26
growth management act. During the 2021-2023 biennium, the legislature 27
may appropriate moneys from the account for projects identified in 28
section 1033, chapter 296, Laws of 2022. During the 2023-2025 fiscal 29
biennium, the legislature may appropriate moneys from the public 30
works assistance account for an evaluation of the costs of relocating 31
public utilities related to fish barrier removal projects. During the 32
2023-2025 fiscal biennium, the legislature may appropriate moneys 33
from the account for activities related to developing a data 34
dashboard to map investments made by the public works board, the 35
department of commerce, the department of health, the department of 36
ecology, the department of transportation, the transportation 37
improvement board, and by board partners to the system improvement 38
team created in RCW 43.155.150. 39
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(2) For fiscal year 2024 ((through fiscal year 2038 )) and 2025 , 1
the state treasurer must transfer from the public works assistance 2
account to the move ahead WA account created in RCW 46.68.510 3
$57,000,000 each fiscal year in four equal quarterly transfers.4
Sec. 3. RCW 47.56.165 and 2022 c 223 s 1 are each amended to 5
read as follows: 6
A special account to be known as the Tacoma Narrows toll bridge 7
account is created in the motor vehicle fund in the state treasury.8
(1) Deposits to the account must include: 9
(a) All proceeds of bonds issued for construction of the Tacoma 10
Narrows public-private initiative project, including any capitalized 11
interest; 12
(b) All of the toll charges and other revenues received from the 13
operation of the Tacoma Narrows bridge as a toll facility, to be 14
deposited at least monthly; 15
(c) Any interest that may be earned from the deposit or 16
investment of those revenues; 17
(d) Notwithstanding RCW 47.12.063, proceeds from the sale of any 18
surplus real property acquired for the purpose of building the second 19
Tacoma Narrows bridge; 20
(e) All liquidated damages collected under any contract involving 21
the construction of the second Tacoma Narrows bridge; and22
(f) Beginning with September 2022 and ending July 1, ((2032)) 23
2025, by the last day of September, December, March, and June of each 24
year, the state treasurer shall transfer from the general fund to the 25
account the sum of $3,250,000. The total amount that may be 26
transferred pursuant to this subsection is $130,000,000.27
(2) Proceeds of bonds shall be used consistent with RCW 28
47.46.130, including the reimbursement of expenses and fees incurred 29
under agreements entered into under RCW 47.46.040 as required by 30
those agreements. 31
(3) Toll charges, other revenues, and interest may only be used 32
to: 33
(a) Pay required costs that contribute directly to the financing, 34
operation, maintenance, management, and necessary repairs of the 35
tolled facility, as determined by rule by the transportation 36
commission; and 37
(b) Repay amounts to the motor vehicle fund as required under RCW 38
47.46.140. 39
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(4) Toll charges, other revenues, and interest may not be used to 1
pay for costs that do not contribute directly to the financing, 2
operation, maintenance, management, and necessary repairs of the 3
tolled facility, as determined by rule by the transportation 4
commission. 5
(5) The department shall make detailed quarterly expenditure 6
reports available to the transportation commission and to the public 7
on the department's website using current department resources.8
(6) When repaying the motor vehicle fund under RCW 47.46.140, the 9
state treasurer shall transfer funds from the Tacoma Narrows toll 10
bridge account to the motor vehicle fund on or before each debt 11
service date for bonds issued for the Tacoma Narrows public-private 12
initiative project in an amount sufficient to repay the motor vehicle 13
fund for amounts transferred from that fund to the highway bond 14
retirement fund to provide for any bond principal and interest due on 15
that date. The state treasurer may establish subaccounts for the 16
purpose of segregating toll charges, bond sale proceeds, and other 17
revenues. 18
Sec. 4. RCW 82.21.030 and 2023 c 68 s 3 are each amended to read 19
as follows: 20
(1)(a) A tax is imposed on the privilege of possession of 21
hazardous substances in this state. Except as provided in (b) of this 22
subsection, the rate of the tax is seven-tenths of one percent 23
multiplied by the wholesale value of the substance. Moneys collected 24
under this subsection (1)(a) must be deposited in the model toxics 25
control capital account. 26
(b) For the fiscal year beginning July 1, 2019, the rate of the 27
tax on petroleum products is $1.09 per barrel. For subsequent fiscal 28
years, the rate of tax on petroleum products is determined pursuant 29
to subsection (3) of this section. The tax collected under this 30
subsection (1)(b) on petroleum products must be deposited as follows, 31
after first depositing the tax as provided in (c) of this 32
subsection((, except that during the 2021-2023 biennium the deposit 33
as provided in (c) of this subsection may be prorated equally across 34
each month of the biennium)): 35
(i) Sixty percent to the model toxics control operating account 36
created under RCW 70A.305.180; 37
(ii) Twenty-five percent to the model toxics control capital 38
account created under RCW 70A.305.190; and 39
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(iii) Fifteen percent to the model toxics control stormwater 1
account created under RCW 70A.305.200. 2
(c) ((Until the beginning of the ensuing biennium after the 3
enactment of an additive transportation funding act )) Through the 4
2025-2027 fiscal biennium , $50,000,000 per biennium to the motor 5
vehicle fund to be used exclusively for transportation stormwater 6
activities and projects. ((For purposes of this subsection, "additive 7
transportation funding act" means an act enacted after June 30, 2023, 8
in which the combined total of new revenues deposited into the motor 9
vehicle fund and the multimodal transportation account exceed 10
$2,000,000,000 per biennium attributable solely to an increase in 11
revenue from the enactment of the act.))12
(d) The department must compile a list of petroleum products that 13
are not easily measured on a per barrel basis. Petroleum products 14
identified on the list are subject to the rate under (a) of this 15
subsection in lieu of the volumetric rate under (b) of this 16
subsection. The list will be made in a form and manner prescribed by 17
the department and must be made available on the department's 18
internet website. In compiling the list, the department may accept 19
technical assistance from persons that sell, market, or distribute 20
petroleum products and consider any other resource the department 21
finds useful in compiling the list. 22
(2) Chapter 82.32 RCW applies to the tax imposed in this chapter. 23
The tax due dates, reporting periods, and return requirements 24
applicable to chapter 82.04 RCW apply equally to the tax imposed in 25
this chapter. 26
(3) For fiscal years beginning on or after July 1, 2020, the rate 27
of tax on petroleum products for the previous fiscal year must be 28
adjusted to reflect the percentage change in the implicit price 29
deflator for nonresidential structures as published by the United 30
States department of commerce, bureau of economic analysis for the 31
most recent 12-month period ending December 31st of the prior year.32
Sec. 5. RCW 82.08.020 and 2022 c 16 s 145 are each amended to 33
read as follows: 34
(1) There is levied and collected a tax equal to six and five-35
tenths percent of the selling price on each retail sale in this state 36
of: 37
(a) Tangible personal property, unless the sale is specifically 38
excluded from the RCW 82.04.050 definition of retail sale;39
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(b) Digital goods, digital codes, and digital automated services, 1
if the sale is included within the RCW 82.04.050 definition of retail 2
sale; 3
(c) Services, other than digital automated services, included 4
within the RCW 82.04.050 definition of retail sale;5
(d) Extended warranties to consumers; and 6
(e) Anything else, the sale of which is included within the RCW 7
82.04.050 definition of retail sale. 8
(2) There is levied and collected an additional tax on each 9
retail car rental, regardless of whether the vehicle is licensed in 10
this state, equal to five and nine-tenths percent of the selling 11
price. The revenue collected under this subsection must be deposited 12
in the multimodal transportation account created in RCW 47.66.070.13
(3) Beginning July 1, 2003, there is levied and collected an 14
additional tax of three-tenths of one percent of the selling price on 15
each retail sale of a motor vehicle in this state, other than retail 16
car rentals taxed under subsection (2) of this section. The revenue 17
collected under this subsection must be deposited in the multimodal 18
transportation account created in RCW 47.66.070. 19
(4) For purposes of subsection (3) of this section, "motor 20
vehicle" has the meaning provided in RCW 46.04.320, but does not 21
include: 22
(a) Farm tractors or farm vehicles as defined in RCW 46.04.180 23
and 46.04.181, unless the farm tractor or farm vehicle is for use in 24
the production of cannabis; 25
(b) Off-road vehicles as defined in RCW 46.04.365;26
(c) Nonhighway vehicles as defined in RCW 46.09.310; and27
(d) Snowmobiles as defined in RCW 46.04.546. 28
(5) Beginning on December 8, 2005, 0.16 percent of the taxes 29
collected under subsection (1) of this section must be dedicated to 30
funding comprehensive performance audits required under RCW 31
43.09.470. The revenue identified in this subsection must be 32
deposited in the performance audits of government account created in 33
RCW 43.09.475. 34
(6) Beginning July 1, 2027, the portion of taxes collected under 35
subsection (1) of this section equal to 0.3 percent of the selling 36
price on each retail sale in this state must be deposited in the 37
multimodal transportation account created in RCW 47.66.070.38
(7) The taxes imposed under this chapter apply to successive 39
retail sales of the same property. 40
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(((7))) (8) The rates provided in this section apply to taxes 1
imposed under chapter 82.12 RCW as provided in RCW 82.12.020.2
Sec. 6. RCW 82.12.020 and 2017 c 323 s 520 are each amended to 3
read as follows: 4
(1) There is levied and collected from every person in this state 5
a tax or excise for the privilege of using within this state as a 6
consumer any: 7
(a) Article of tangible personal property acquired by the user in 8
any manner, including tangible personal property acquired at a casual 9
or isolated sale, and including by-products used by the manufacturer 10
thereof, except as otherwise provided in this chapter, irrespective 11
of whether the article or similar articles are manufactured or are 12
available for purchase within this state; 13
(b) Prewritten computer software, regardless of the method of 14
delivery, but excluding prewritten computer software that is either 15
provided free of charge or is provided for temporary use in viewing 16
information, or both; 17
(c) Services defined as a retail sale in RCW 82.04.050 (2) (a) or 18
(g) or (6)(c), excluding services defined as a retail sale in RCW 19
82.04.050(6)(c) that are provided free of charge; 20
(d) Extended warranty; or 21
(e)(i) Digital good, digital code, or digital automated service, 22
including the use of any services provided by a seller exclusively in 23
connection with digital goods, digital codes, or digital automated 24
services, whether or not a separate charge is made for such services.25
(ii) With respect to the use of digital goods, digital automated 26
services, and digital codes acquired by purchase, the tax imposed in 27
this subsection (1)(e) applies in respect to: 28
(A) Sales in which the seller has granted the purchaser the right 29
of permanent use; 30
(B) Sales in which the seller has granted the purchaser a right 31
of use that is less than permanent; 32
(C) Sales in which the purchaser is not obligated to make 33
continued payment as a condition of the sale; and 34
(D) Sales in which the purchaser is obligated to make continued 35
payment as a condition of the sale. 36
(iii) With respect to digital goods, digital automated services, 37
and digital codes acquired other than by purchase, the tax imposed in 38
this subsection (1)(e) applies regardless of whether or not the 39
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consumer has a right of permanent use or is obligated to make 1
continued payment as a condition of use. 2
(2) The provisions of this chapter do not apply in respect to the 3
use of any article of tangible personal property, extended warranty, 4
digital good, digital code, digital automated service, or service 5
taxable under RCW 82.04.050 (2) (a) or (g) or (6)(c), if the sale to, 6
or the use by, the present user or the present user's bailor or donor 7
has already been subjected to the tax under chapter 82.08 RCW or this 8
chapter and the tax has been paid by the present user or by the 9
present user's bailor or donor. 10
(3)(a) Except as provided in this section, payment of the tax 11
imposed by this chapter or chapter 82.08 RCW by one purchaser or user 12
of tangible personal property, extended warranty, digital good, 13
digital code, digital automated service, or other service does not 14
have the effect of exempting any other purchaser or user of the same 15
property, extended warranty, digital good, digital code, digital 16
automated service, or other service from the taxes imposed by such 17
chapters. 18
(b) The tax imposed by this chapter does not apply:19
(i) If the sale to, or the use by, the present user or his or her 20
bailor or donor has already been subjected to the tax under chapter 21
82.08 RCW or this chapter and the tax has been paid by the present 22
user or by his or her bailor or donor; 23
(ii) In respect to the use of any article of tangible personal 24
property acquired by bailment and the tax has once been paid based on 25
reasonable rental as determined by RCW 82.12.060 measured by the 26
value of the article at time of first use multiplied by the tax rate 27
imposed by chapter 82.08 RCW or this chapter as of the time of first 28
use; 29
(iii) In respect to the use of any article of tangible personal 30
property acquired by bailment, if the property was acquired by a 31
previous bailee from the same bailor for use in the same general 32
activity and the original bailment was prior to June 9, 1961; or33
(iv) To the use of digital goods or digital automated services, 34
which were obtained through the use of a digital code, if the sale of 35
the digital code to, or the use of the digital code by, the present 36
user or the present user's bailor or donor has already been subjected 37
to the tax under chapter 82.08 RCW or this chapter and the tax has 38
been paid by the present user or by the present user's bailor or 39
donor. 40
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(4)(a) Except as provided in (b) of this subsection (4), the tax 1
is levied and must be collected in an amount equal to the value of 2
the article used, value of the digital good or digital code used, 3
value of the extended warranty used, or value of the service used by 4
the taxpayer, multiplied by the applicable rates in effect for the 5
retail sales tax under RCW 82.08.020. 6
(b) In the case of a seller required to collect use tax from the 7
purchaser, the tax must be collected in an amount equal to the 8
purchase price multiplied by the applicable rate in effect for the 9
retail sales tax under RCW 82.08.020. 10
(5) Beginning July 1, 2027, the portion of taxes collected under 11
subsection (1) of this section equal to 0.3 percent of the value of 12
the article used, value of the digital good or digital code used, 13
value of the extended warranty used, or value of the service used by 14
the taxpayer, must be deposited in the multimodal transportation 15
account created in RCW 47.66.070.16
(6) For purposes of the tax imposed in this section, "person" 17
includes anyone within the definition of "buyer," "purchaser," and 18
"consumer" in RCW 82.08.010. 19
NEW SECTION. Sec. 7. Sections 1 through 3 of this act are 20
necessary for the immediate preservation of the public peace, health, 21
or safety, or support of the state government and its existing public 22
institutions, and take effect July 1, 2025.23
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