TAX FILE: Washington State keeps fuel tax hikes

By a 53% to 47% margin, voters in Washington state rejected a ballot initiative November 8 that would have set aside scheduled increases in the state's gasoline and diesel fuel taxes. Thus, the tax will rise as scheduled by three cents per gallon on July 1, 2006, another two cents per gallon in 2007, and another 1.5 cents per gallon in 2008. Funds from these tax increases, along with an initial three-cent installment that took effect earlier this year and a registration fee increase, will fund a variety of highway improvements around the state.