Legislator proposes pay-per-mile driver tax to buoy declining gas tax revenue

A Washington lawmaker has introduced a bill that could charge drivers for each mile they drive.

Rep. Jake Fey, D-Tacoma, chair of the House Transportation Committee, has proposed a Road Usage Charge for passenger vehicles in the state amid a yearslong decline in gas tax revenue.

If adopted, the proposal would charge Washington drivers 2.6 cents for each mile driven. The program would be phased in, with the first phase beginning in 2027. Vehicles over 10,000 pounds would be exempt.

The House Transportation Committee will consider the legislation during a hearing Thursday.

According to Fey, Washington’s gas tax of 49.4 cents per gallon currently funds more than a third of the state’s transportation budget. But as cars become more fuel efficient, and electric vehicles gain in popularity, the state is projected to see a steep decline in revenue from the tax.

By 2050, Fey says gas tax revenue could decline by over 70%, and the state would need to quadruple the gas tax to maintain current revenue levels. During a media availability Tuesday, Fey said revenues have remained a consistent challenge during his seven years as chair of the transportation committee.

“Without a new funding solution, Washington roads, bridges and ferries will deteriorate,” Fey said.

Fey said several states have considered similar proposals or implemented voluntary programs for drivers, including Utah, Hawaii, Virginia and Oregon.

If adopted, the charge would be calculated through self-reported mileage information provided by drivers. Drivers would not be required to install a GPS in their cars, and drivers would no longer be required to pay the annual $225 fee for electric vehicles or $75 for hybrid vehicle registration.

“I know that there are people who will have concerns about this,” Fey said. “We will not be requiring any device in a vehicle. It will be self-reported. The odometer mileage year to year will be self-reported to the Department of Licensing.”

Drivers would not be required to pay for both the gas tax and mileage tax, and they would receive credits for the gas tax they’ve already paid, Fey said.

The money collected, Fey said, would be used solely for highway maintenance and improvements.

“Absent something like this, we’re going to spiral downwards on the base form for revenues for the state transportation system,” Fey said.

The proposal’s future in the Legislature, however, remains unclear.

“How far it gets in the legislative process, we’ll see, but I would like to see some level of action on this,” Fey said, adding that legislators must address the decline in revenue in some form.

During a media availability Monday, Senate Majority Leader Jaimie Pedersen, D-Seattle, said the Legislature must consider new revenue sources to fund the transportation budget.

“There are all sorts of possibilities for what we might shift to not relying on the gas tax,” Pedersen said. “This is an option that has been discussed for a long time. To make it real, there are probably some steps we’ll take this session to make sure that it’s one that we can consider fully.”