The bill establishes tax exemptions for nonprofit organizations that operate adaptive recreational and rehabilitation facilities dedicated to assisting disabled veterans and members of the armed forces. Specifically, it adds new sections to chapters 82.04, 82.08, and 82.12 of the Revised Code of Washington (RCW), which exempt sales and use taxes on transactions occurring on federal military reservations involving these nonprofit organizations. The bill defines "adaptive recreational and rehabilitation facility" as one that provides modifications and services to enable individuals with disabilities to engage in recreational activities and rehabilitation efforts. These tax exemptions are set to expire on January 1, 2035.

Additionally, the bill includes a tax preference performance statement aimed at evaluating the effectiveness of these tax exemptions in increasing the utilization of such facilities by the targeted groups. If the review indicates a positive impact, the legislature intends to consider extending the expiration date of the tax preference. The act is set to take effect on October 1, 2024.