The bill amends RCW 82.14.540 to enhance the framework for affordable and supportive housing sales and use taxes in Washington State. It introduces new definitions for "nonparticipating city," "nonparticipating county," "participating city," and "participating county," which clarify the tax imposition criteria. The bill allows counties and cities to impose a sales and use tax to fund affordable housing initiatives, with specific tax rates established based on whether a qualifying local tax is levied. The legislation also stipulates that the funds collected can only be used for acquiring, rehabilitating, or constructing affordable housing, funding operations and maintenance costs, or providing rental assistance to tenants.

Additionally, the bill modifies income eligibility criteria for housing assistance, allowing support for individuals and families earning up to 80 percent of the median income if the funds are used for owner-occupied affordable housing. It mandates that counties and cities report annually on the collection and use of the revenue generated from this tax, ensuring transparency and accountability. The tax imposed under this section will expire twenty years after its initial imposition, providing a structured timeline for its implementation and review.

Statutes affected:
Original Bill: 82.14.540
Bill as Passed Legislature: 82.14.540
Session Law: 82.14.540