Ybarra introduces bill to roll back special fuels tax

OLYMPIA — A bill to repeal a “special fuels tax” imposed in 2025 on diesel and other fuels was introduced for the 2026 Washington legislative session by 13th District representative Alex Ybarra, R-Quincy, on Tuesday. 

“When the state raises taxes on diesel, the cost burden falls on everyone, but it hurts those already struggling to make ends meet the most,” Ybarra said in a press release announcing the bill’s filing. 

The tax increase went into effect in July 2025 and includes a schedule of future increases. Ybarra’s bill would get rid of the 2025 tax increase, cancel the future increases and roll back the tax to the July 2016 rate. 

“This fuel tax was intended to increase revenue for the state, but it will actually do the opposite,” Ybarra said. “The increase will incentivize more drivers to buy fuel in neighboring states, which will cost Washington revenue and reduce funding for important road projects.” 

He said the price of diesel in Idaho is about $1.37 less than in Washington, and that drivers who use diesel and other fuels buy gas in neighboring states when they can. 

“This bill would lower operating costs for producers and freight haulers and keep Washington-grown products competitive. It would also keep the cost of goods from increasing even more,” he said. "Reducing the special fuels tax would help stabilize food prices, support rural communities, and strengthen our state's economy without hurting working individuals and families, especially in rural areas."