The bill aims to provide local governments in Washington State with the option to allocate a portion of their new revenue to support tax increment areas within their jurisdiction. It establishes specific conditions for designating increment areas, including limitations on assessed valuations, the number of active increment areas, and requirements for public improvement projects. Notably, the bill introduces provisions that allow for the dissolution of a tax increment area once all bonded indebtedness related to public improvements is paid off, rather than adhering to a predetermined sunset date. Additionally, it mandates that the governing body of any taxing district within the increment area must approve their participation in the tax increment project.

Furthermore, the bill clarifies the apportionment of tax allocation revenues, ensuring that local governments can receive funds necessary to cover public improvement costs while also allowing for the distribution of excess revenues back to the taxing districts. It emphasizes the need for public briefings and project analyses prior to the establishment of an increment area, ensuring community involvement and transparency in the process. The amendments to RCW 39.114.020 and 39.114.050 reflect these changes, including the insertion of new language regarding the approval process for taxing districts and the conditions under which tax allocation revenues may cease.

Statutes affected:
Original Bill: 39.114.020, 39.114.050