Incorporated cities, towns and counties receive a portion of the gas tax receipts based upon population (RCW 46.68.110 and 120). Small towns have some of these funds controlled by the state for road repairs, however bigger cities and counties just receive the money into their general funds.
As I remember, in about 1950 Seattle got the state to change the law to allow that use – a change from the previous requirement that those funds must be dedicated to repair and maintenance of roadways. That’s why streets are in poor repair.
Taxpayers should demand that their government utilize all the gas tax money received for repair and maintenance of streets.