This bill establishes a new funding mechanism for community preservation and development authorities in counties with populations of 1,000,000 or more by allowing these counties to impose a sales and use tax. The tax, which can be up to 2.0 percent, is applicable to taxable events occurring within qualified facilities, defined as those with significant seating capacities and event space. The Washington State Department of Revenue will collect this tax on behalf of the counties at no cost, and the proceeds must be directed solely to the community preservation and development authority within the county that imposed the tax.

Additionally, the bill stipulates that if the total tax distributions to a county exceed $5,000,000 in a fiscal year, the tax will cease to be distributed for the remainder of that year. This measure aims to ensure that funding is sustainable and targeted towards community development initiatives while also placing a cap on the amount of tax revenue that can be collected and distributed within a fiscal year.