HB 1284, sponsored by Rep. Sharon Shewmake (D–Whatcom), increases the statutory maximum fuel tax rate that border area jurisdictions may impose.

Currently, cities and towns within a border area jurisdiction may impose an additional one cent per gallon fuel tax, subject to voter approval. The new bill increases the maximum rate to two cents per gallon and adds flexibility to adjust the rate to reflect the change in the implicit price deflator.

The border area fuel tax has not been amended since its inception in 1991, roughly thirty years ago. According to the Bureau of Labor Statistics, if the tax had been tied to the rate of inflation, the border area fuel tax would have been leveraged at two cents since 2007. Cities in border areas currently use the revenue to support critical street maintenance and construction.

Dates to remember

HB 1284 is scheduled for public hearing in the House Transportation Committee on February 11 at 3:30 pm.