Washington Updates Taxes on Vessels, Fuel, and Aircraft

The Washington Governor signed a law which makes multiple tax changes to fund transportation and aviation programs. The law requires that 0.1 percent of retail sales and use tax collections from certain transactions be deposited in the multimodal transportation account beginning July 1, 2027, and clarifies additional sales and use taxes on motor vehicles, recreational vessels, and luxury vehicles. The law also establishes an annual two percent inflation adjustment mechanism for fuel taxes beginning July 1, increases the aircraft fuel excise tax from 18 cents to 25 cents per gallon effective November 1, raises aircraft registration and excise fees, repeals ...