Nonhighway fuel use

From the 2024 DOR Tax Exemption Study

82.38.180(1)(a) - Nonhighway fuel use Description The motor vehicle and special fuel taxes may be refunded for taxes paid on fuel purchased for purposes other than the propulsion of motor vehicles upon highways in Washington. A refund may not be made for fuel consumed by a motor vehicle required to be registered as a commercial motor vehicle. Purpose Under the 18th Amendment to the state constitution, fuel tax receipts can only be used for highway purposes. The refund helps to ensure that the tax applies only to fuel used on public highways. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.840 $5.930 $6.030 $6.120 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $5.440 $6.030 $6.120 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the special fuel tax collections growth rate reflected in the Transportation Revenue Forecast Council's March 2023 forecast. Data Sou