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 increasing costs of essential services and the financial strain on consumers due to inflation. To alleviate these pressures, the bill proposes a city and county option sales and use tax that is credited against the state tax rate, allowing local governments to secure necessary resources without imposing additional burdens on consumers.

The bill introduces a new section to chapter 82.14 RCW, allowing local legislative authorities to impose a sales and use tax at a rate of 0.5 percent on taxable events within their jurisdictions. The total tax levied by both counties and cities cannot exceed 0.5 percent, and if both impose a tax, the city tax will be credited against the county tax. Additionally, the Washington State Department of Revenue will collect these taxes on behalf of local governments at no cost. The act is set to take effect on January 1, 2026.