Transportation law sets vehicle taxes and driver, toll, and transit rules

People who buy or use a motor vehicle valued above $100,000 pay an 8 percent tax on the value above the yearly deduction amount. The rules cover motor vehicles subject to the state sales or use tax, with exceptions for commercial vehicles, certain heavy vehicles, and motor homes through December 31, 2026. The deduction is $100,000 for fiscal year 2026. The deduction rises by 2 percent each July 1 and is rounded to the nearest dollar. The money goes to the multimodal transportation account. The motor-vehicle tax provisions take effect July 1, 2026. The deduction adjusts each July 1.

Aircraft operators pay a 25-cent-per-gallon aircraft fuel tax, and aircraft registration fees are divided between airport programs and sustainable aviation fuel programs. The fuel tax applies to aircraft fuel sold, delivered, or used in Washington. Registration fees apply to aircraft registered with the state, including commercial unpiloted aircraft systems, subject to listed exemptions. Seventy-two percent of aircraft fuel tax revenue goes to the aeronautics account, and 28 percent goes to the sustainable aviation fuel airport infrastructure account. The aircraft registration fee is $30 and rises by 2 percent each year beginning January 1, 2028. Aircraft registration fees are split equally between the aeronautics account and the sustainable aviation fuel account. The aircraft fuel tax and its revenue distribution take effect November 1, 2026. The aircraft registration changes take effect January 1, 2027.

The Department of Licensing must create a $5 identicard option for eligible older drivers who voluntarily give up their driver's licenses. Eligible drivers are Washington-licensed drivers age 70 or older who meet department requirements and are expected to live in Washington. The driver must meet the department's identification and licensing requirements. A driver may receive the reduced-fee identicard only once. An enhanced identicard requires meeting the department's additional requirements. The Department of Licensing must create and implement the program by January 1, 2028.

The transportation department may issue a civil penalty when a photo toll is unpaid by the due date, and it must provide a process for people to explain serious circumstances. The rules apply to registered owners or renters whose vehicles incur unpaid tolls recorded by a photo toll system. The toll payment deadline is 80 days after the vehicle uses the toll facility. The penalty is $40 plus the unpaid toll and related fees. People may present evidence such as hospitalization, military deployment, eviction, homelessness, death, payment-account errors, or agency mistakes. An adjudicator may reduce or dismiss the penalty and related fees; a review opportunity does not guarantee a reduction or dismissal. The 80-day payment period runs from the date the vehicle uses the toll facility. The supplied section does not state a separate effective date.