Engrossed Substitute House Bill 2711, passed March 11, 2026, is a multi-part transportation resources act that reenacts and amends numerous tax and transportation-related RCW sections, creates new sections and accounts, and sets varied effective and expiration dates. The bill changes retail sales and use tax law (including reenacting RCW 82.08.020 and RCW 82.12.020) to establish or modify several targeted taxes and where revenues are deposited. Key tax changes include an additional retail car rental tax (11.9% of selling price for 2026, 9.9% beginning 2027), an additional tax on peer-to-peer car sharing transactions beginning January 1, 2027 at the same rental rate (subject to conditions), an additional 0.5% tax on each motor vehicle retail sale, an additional 0.5% tax on recreational vessel sales, a luxury vehicle surtax of 8% on value above a deduction amount (deduction amount set at $100,000 for FY 2026 and adjusted annually), and specified portions (including 0.1% of certain use taxes beginning July 1, 2027) and other collections to be deposited into the multimodal transportation account (RCW 47.66.070). The bill also imposes a $5 retail fee on new replacement vehicle tires, continues or modifies an alternative fuel vehicle retail tax exemption with capped amounts and expirations, and provides a temporary Department of Revenue penalty-and-interest waiver process for certain motor vehicle taxes with application and expiration deadlines noted. The bill amends fuel tax and distribution law and trust-fund collection rules. RCW 82.38.030 is amended to list base and additional fuel tax rates, to impose an annually calculated additional cumulative special fuel tax on special fuel determined each July 1 by a 2% escalation formula, and to prescribe detailed monthly distributions of net motor vehicle fuel tax revenues among many named accounts (including creation of a special category C account and a county arterial preservation account with specified priorities and uses). The Department of Revenue is given expanded authority to pursue unpaid trust fund taxes from limited liability entities and to impose personal liability on responsible individuals, including current or former CEOs and CFOs in certain circumstances. The bill establishes a treasury income account (amending RCW 43.84.092 and RCW 43.79A.040) to receive earnings on invested surplus treasury balances, directs monthly distributions with many specified accounts receiving proportionate shares based on average daily balances, and authorizes the Office of Financial Management to implement Cash Management Improvement Act (CMIA) obligations and use the account for certain banking service payments. The bill makes multiple procedural and administrative changes affecting tolling, aviation, transit, and other programs. It creates a civil penalty and administrative adjudication regime specific to photo toll system nonpayment (toll due date defined as 80 days after use, a $40 civil penalty plus unpaid tolls/fees, required notice and mitigation/adjudication procedures, limits on photo records use, outreach and signage requirements, and rental car business notice/response rules). It amends aircraft registration and excise provisions to require annual registration of all aircraft including commercial unpiloted aircraft systems, sets a $30 registration fee with 2% annual increases beginning January 1, 2028, apportions registration and excise revenue between the aeronautics account and a sustainable aviation fuel account, revises excise schedules and deposits, and repeals specified luxury aircraft tax provisions. It also creates a sustainable aviation fuel airport infrastructure account for certain receipts, establishes a competitive bus and bus facilities grant program with environmental justice and geographic diversity criteria, and directs the Department of Licensing and Department of Revenue to administer related lists, records, and reporting. Important portions of the bill text are incomplete in the provided extracts; several sections end mid-sentence, numerous listed RCW amendments and cross-references are not shown in full, and some referenced sections or definitions from other acts or prior bills are not included here.

If enacted, people and businesses that rent cars, buy or lease vehicles, use peer‑to‑peer car sharing, or buy recreational boats will likely pay new or higher taxes that are earmarked for multimodal transportation projects. Retail car rentals face an extra 11.9% tax in 2026 and 9.9% thereafter, peer‑to‑peer sharing is taxed at the rental rate starting 1/1/2027 (under conditions not fully shown here), all retail motor vehicle and recreational vessel sales include an extra 0.5% tax, and very high‑value vehicles or leases above roughly $100,000 face an additional 8% luxury tax on the excess. Fuel taxes are adjusted and given an annually recalculated add‑on, so fuel users and businesses that sell or distribute fuel will see higher per‑gallon costs over time. Other user costs include a $5 tire fee and higher aircraft registration/excise fees (registration set at $30 and escalating 2% annually from 2028), while Washington State Ferries may charge customers a visible transaction fee to recoup at least 3% of card processing costs. Some taxpayers get temporary relief options: the Department of Revenue can grant limited penalty and interest waivers for certain motor vehicle tax liabilities, and toll photo‑enforcement rules broaden avenues to contest or reduce civil penalties and require more DOT outreach and system notices. State agencies and local governments will face new revenue flows, administrative duties, and legal exposure. Many of the new and adjusted taxes are dedicated to the multimodal transportation account and to a long list of specified transportation and other state accounts, and the bill centralizes investment earnings in a treasury income account with monthly allocations determined by average daily balances—so the State Treasurer and OFM will need to run new cash‑management and distribution processes. The Department of Revenue must implement collection, audit, and verification duties (including new rules for leases and luxury vehicle collections), and the Department of Transportation must update toll systems, create adjudication rules, and run outreach before all‑electronic photo tolling. Business owners and managers of limited liability entities face greater enforcement risk: the department can pursue trust fund tax liabilities from responsible individuals, including CEOs and CFOs, in certain cases. Important implementation details are missing from the provided text—for example, the precise conditions triggering peer‑to‑peer car sharing tax, the full fuel tax calculation language, and the exact name and uses of the account created by section 403(2)—so some practical effects and timing remain uncertain.