Bill > HB2126

This bill provides a tax exemption for fuel used in school buses by amending existing state tax laws. Specifically, the bill adds a new provision to RCW 82.38.080 that exempts sales of special fuel or motor vehicle fuel to school districts for use in school buses operated under chapter 28A.160 RCW, which governs student transportation. The bill also modifies RCW 82.38.180 to allow school districts to file claims for tax refunds on fuel used in school buses. This means that school districts will no longer have to pay taxes on fuel purchased for their bus fleets, potentially reducing transportation costs for public schools. The tax exemption will take effect on July 1, 2026, giving school districts and state tax authorities time to prepare for the change. The bill uses technical language to modify existing tax code, but the core purpose is straightforward: to provide a financial break for school transportation services by eliminating fuel taxes.

Transportation and Infrastructure

https://app.leg.wa.gov/billsummary?BillNumber=2126&Year=2025&Initiative=false