Provides a sales and use tax exemption on highway improvement and preservation projects administered by the department of transportation. The exemptions apply to: (1) Highway improvement or preservation projects that are identified by the legislature as connecting Washington projects until June 30, 2019; and

(2) All highway improvement or preservation projects administered by the department of transportation beginning on July 1, 2019.

Transfers from the general fund to the connecting Washington account, state sales and use taxes paid with funds appropriated in an omnibus transportation appropriations act for transportation projects.