Sales and Use Taxes.  Retail sales taxes are imposed on retail sales of most articles of tangible personal property, digital products, and some services.  If retail sales taxes were not collected when the user acquired the property, digital products, or services, then use tax applies to the value of property, digital product, or service when used in this state.  The state, all counties, and all cities levy retail sales and use taxes.  The state sales and use tax rate is 6.5 percent.  State sales and use tax revenues are deposited into the State General Fund.

An additional 0.3 percent sales and use tax on motor vehicle purchases was enacted in 2003.  Revenue generated from the 0.3 percent sales and use tax on vehicles is deposited into the Multimodal Transportation Account for transportation purposes.

Move Ahead Washington Public Works Assistance Account Transfers.  Chapter 182, Laws of 2022 (Engrossed Substitute Senate Bill 5974) required the State Treasurer to make annual transfers of $57 million from the Public Works Assistance Account to the Move Ahead Washington Account for fiscal year (FY) 2024 through FY 2038.

Move Ahead Washington State General Fund Transfers.  Engrossed Substitute Senate Bill 5974 required the State Treasurer to make annual transfers of $57 million from the State General Fund to the Move Ahead Washington Flexible Account for FY 2024 through FY 2038.

Connecting Washington Transfers.  The Connecting Washington transportation proposal in 2015 included a quarterly transfer from the State General Fund to the Connecting Washington Account over the 12-year period between FY 2020 and FY 2031 that totaled $518 million.  The amount was calculated based on the sales and use tax associated with Connecting Washington projects.

Tacoma Narrows Bridge Sales Tax Deferral.  The eastbound Tacoma Narrows Bridge (TNB) opened to traffic in July 2007 as a toll bridge.  The bridge cost $735 million to complete and was funded by selling general obligation bonds that were backed by the Motor Vehicle Account and the full faith and credit of the state of Washington.

State and local sales and use tax due on the site preparation, construction, acquisition of related machinery and equipment, and the rental of equipment related to the TNB project was deferred in prior legislation.  Payment of these taxes must begin in the twenty-fourth calendar year after the project is operationally complete and is then due in equal yearly installments over the following decade.  These payments are currently scheduled to begin by the end of FY 2031.

State Route 520 Floating Bridge Sales Tax Deferral.  The original Evergreen Point Floating Bridge was a toll bridge across Lake Washington that opened to traffic in 1963, with two general-purpose lanes in each direction.  The replacement floating bridge, which opened to traffic in 2016, was constructed by the State Route 520 Bridge Replacement and High-Occupancy Vehicle (SR 520 Bridge Replacement) project.  State and local sales and use tax due on the site preparation, construction, acquisition of related machinery and equipment, and the rental of equipment related to the SR 520 Bridge Replacement project was deferred in prior legislation.  Payment for these taxes must begin in the twenty-fourth calendar year after the project is operationally complete and is then due in equal yearly installments over the following decade.  These payments are currently scheduled to begin by the end of FY 2041.

Sales and Use Taxes.  Beginning July 1, 2027, 0.1 percentage points of the 6.5 percent state sales and use tax rate must be deposited in the Multimodal Transportation Account rather than the State General Fund.

Move Ahead Washington and Public Works Assistance Account Transfers.  The $57 million in annual transfers from the Public Works Assistance Account to the Move Ahead Washington Account are eliminated for the 2025-27 biennium.  Two $57 million annual transfers from the Public Works Assistance Account to the State General Fund are established for the 2025-27 biennium.

Move Ahead Washington Flexible Account and State General Fund Transfers.  The $57 million in annual transfers from the State General Fund to the Move Ahead Washington Flexible Account are suspended for the 2025-27 biennium.

Tacoma Narrows Bridge Sales Tax Deferral.  The deferral period for sales and use taxes associated with the TNB project is shortened from the twenty-fourth year after completion of the project to the end of FY 2026.  Legislative intent is expressed that any nontoll accounts used to pay the deferred sales and use taxes on the TNB project will be reimbursed by toll revenues by December 31, 2032. 

State Route 520 Floating Bridge Sales Tax Deferral.  The deferral period for sales and use taxes associated with the SR 520 Bridge Replacement project is shortened from the twenty-fourth year after completion of the project to the end of FY 2026.  Legislative intent is expressed that any nontoll accounts used to pay the deferred sales and use taxes on the SR 520 Bridge Replacement project will be reimbursed by toll revenues by December 31, 2050.

Multimodal Transportation Account and State General Fund Transfers.  A $114 million transfer from the Multimodal Transportation Account to the State General Fund is established for FY 2026.  An additional $111.9 million transfer from the Multimodal Transportation Account to the State General Fund is established for FY 2026.  Two $304.7 million annual State General Fund transfers to the Multimodal Transportation Account are established for the 2027-29 biennium.