Olympia 2025
—New taxes and laws—
By Damon Townsend (July 1, 2025)
July 1st is my birthday. It also happens to be the halfway point of the year, and for our neighbors to the north, it’s Canada Day. But here in Washington, July 1 also marks the day when many new laws passed by our state legislature officially take effect. Which means that every year, I get to unwrap a few legislative presents—some welcome, others, not so much.
This year, the legislature gave us a mixed bag of policy changes. Let’s start with what I’d call the big-ticket item: the gas tax increase.
As of July 1, Washington drivers are now paying 55.4 cents per gallon in state fuel tax, up six cents from last year. And because that wasn’t quite enough, the law includes a built-in 2% annual increase starting next year, indexed to inflation.
Diesel is also going up, as are a whole slew of fees tied to vehicle registration, title filing, and luxury car purchases. Even tire disposal and rental car taxes got in on the act. This is part of a broader transportation funding plan pushed through by majority Democrats to cover ballooning costs and delays.
This increase in the cost of fuel burdens everyday Washingtonians, especially rural and working-class drivers, with another regressive tax, while the state remains flush from recent surpluses. For a party like ours, the Cascade Party, which values fairness, regional equity, and affordability, this is exactly the kind of law we would have voted against.
My family just purchased our first electric vehicle. That means we won't be hurt quite as much by the gas tax increase as others, but it will still burn. Electricity isn't free, and we'll still feel the ripple effect in other costs. Besides, any savings we hoped to see might be washed out by the new "Tesla tax" on zero-emission vehicle credits. If the state’s goal is sustainability, it needs to watch for consistency — not just shifting costs from one pocket to another.
July 1 also brings changes to Washington's estate tax and capital gains tax structure. These changes raise rates significantly for large estates and high-dollar investment gains, with proceeds earmarked for education and child care. Funding education is essential, no argument there. But punishing success and long-term investment isn’t the answer. These taxes will hit business owners and family farms hardest — even with carveouts for some non-familial farm inheritances. It's a classic example of policy crafted with good intentions but destined to have unintended consequences, which the Cascade Party has warned against repeatedly.
But it wasn't all bad news. One law that did earn a cheer is the expansion of the Equal Pay and Opportunities Act. It now protects workers from wage discrimination based not just on gender, but on age, race, disability, citizenship status, and more. Equal pay for equal work isn’t a radical idea; it’s common sense. And this update brings us closer to that goal. It’s the kind of law that fits squarely with Cascade values—fairness, dignity in work, and accountability in governance.
Another law that aligns well with our principles is the new protection against immigration-based coercion in the workplace. Employers can no longer threaten workers with immigration status retaliation to silence complaints. This strengthens the rule of law and helps level the playing field for ethical businesses. It’s not about politics—it’s about decency and equal protection.
Alyssa's Law also took effect, requiring panic buttons and better emergency response systems in our schools. It passed unanimously, and for good reason. This is exactly the kind of bipartisan, safety-first policy that makes sense. It doesn't trample rights or inflate bureaucracy; it just makes schools safer. Cascade Party members should be proud to support laws like this.
In the same vein, a small but meaningful win for property rights passed: a right-of-first-refusal for land seized through eminent domain, letting families reclaim property if the public use never materializes. It's a matter of basic fairness and respect for individual ownership. That’s Cascade policy in action, even if we didn’t author the bill ourselves.
Unfortunately, the legislature also passed a reduction in college financial aid, cutting support for students attending private and for-profit schools and trimming awards for many middle-income families. This rollback undermines years of progress in making higher education accessible. Education is one of the best investments a society can make, and the Cascade Party believes we should be expanding opportunities, not shrinking them.
So, this year, my birthday haul from Olympia was a little bit sweet, a little bit sour. But that’s politics. And as we at the Cascade Party work to shape future sessions with smarter, more balanced policy, I’ll keep celebrating my July 1 birthdays the same way: cake in one hand, a copy of the RCWs in the other.
Damon Townsend is a Cascade Party board Member, representing district 3/6. He has experience in government administration.