This bill aims to address the financial challenges faced by cities and counties in Washington state by authorizing a local sales and use tax. The legislature recognizes the rising costs of essential services and the financial strain on consumers, and thus intends to implement a tax that is credited against the state rate. This approach is designed to provide local governments with the necessary resources to meet infrastructure and service demands without increasing the overall tax burden on residents.

The bill introduces a new section to chapter 82.14 RCW, allowing the legislative authority of any county or city to impose a sales and use tax at a rate of 0.5 percent. This tax will be collected from individuals taxable under state law during any taxable event within the jurisdiction. Importantly, if both a city and a county impose this tax, the city tax will be credited against the county tax, ensuring that the combined total does not exceed 0.5 percent. The Washington State Department of Revenue will handle the tax collection at no cost to the local governments. The act is set to take effect on January 1, 2026.