The cost of gasoline has a direct impact on the economy, as it affects the cost of transportation, goods, and services. In the state of Washington, the taxes imposed on fuel are intended to fund various state programs and services. Knowing how much is the gas tax in Washington State is important for drivers, businesses, and individuals looking to manage their transportation costs.
Gas Taxes in Washington State
Gas taxes in the state of Washington are imposed in the form of excise taxes. These are taxes on the sale or use of a particular good or service. The gas tax is calculated as a percentage of the total cost of a gallon of fuel. In Washington, the state excise tax on gasoline is 37.5 cents per gallon. The state also collects a 9.8 cent per gallon fee for the Leaking Underground Storage Tank (LUST) Fund.
In addition to these, local governments can impose their own taxes on gas. As of 2021, the total average local sales taxes on gasoline in Washington range from 0.52% to 9.4%. This means that the total tax on gasoline in the state can range from 37.9 cents to 53.3 cents per gallon.
Gas Tax Revenues in Washington State
The revenue generated from the taxes imposed on gasoline in Washington is used to fund various state programs and services. The majority of the gas tax revenues are allocated to the Motor Vehicle Fund, which is used to fund the construction and maintenance of highways and other transportation projects. The LUST Fund is used to clean up and prevent contamination from leaking underground storage tanks. Other uses of the gas tax revenue include funding for public transportation and air quality projects.
Impact of Gas Taxes on Consumers
Gas taxes have a direct impact on consumers, as they are passed on to the consumer in the form of higher fuel costs. The amount of tax imposed on fuel can vary significantly from state to state and even from county to county, so it is important for consumers to be aware of how much gas tax is imposed in their area. The gas tax in Washington State is relatively low compared to other states, so drivers in the state may not feel the full impact of the tax.
Conclusion
Gas taxes in Washington State are imposed as excise taxes and local sales taxes. The state excise tax on gasoline is 37.5 cents per gallon, with an additional 9.8 cents per gallon fee for the Leaking Underground Storage Tank (LUST) Fund. Local governments can impose additional taxes on gas, resulting in a total tax of up to 53.3 cents per gallon. The revenues from the gas taxes are used to fund various state programs and services, such as the Motor Vehicle Fund and the LUST Fund. Gas taxes have a direct impact on consumers, as they are passed on to the consumer in the form of higher fuel costs.
