This bill amends Washington state law concerning public facilities districts, particularly focusing on the imposition of sales and use taxes. It permits districts established before certain dates to impose a sales and use tax at a rate not exceeding 0.033 percent, with the possibility of increasing it to 0.037 percent under specific revenue loss conditions. The bill extends the expiration of this tax from 40 to 65 years after the first collection and mandates that the collected funds must be matched with an additional 33 percent from other public or private sources. Furthermore, it introduces provisions for excise taxes on lodging in districts located in counties with populations over 1.5 million, setting a maximum tax rate of 7 percent and requiring voter approval for new taxes.

Additionally, the bill redefines "short-term rental" and retroactively deems certain taxes to have been imposed since December 1, 2000. It requires public facilities districts in populous counties to make quarterly payments to cities that have authorized short-term rental taxes, provided the city has not repealed such ordinances. The compensation for board members of public facilities districts is increased from $50 to $100 per day, with the annual cap raised from $3,000 to $6,000, and includes provisions for inflation adjustments every five years starting in 2029. Lastly, the bill stipulates that proceeds from payments to cities and counties must support community-initiated equitable development and affordable housing programs as determined by local governments.

Statutes affected:
Original Bill: 82.14.390, 82.14.0485, 36.100.130
Substitute Bill: 82.14.390, 82.14.0485, 36.100.040, 36.100.130