This bill aims to provide new funding tools to enhance community vitality in certain cities that host industrial and warehousing industries, particularly those near the ports of Seattle and Tacoma. The legislation recognizes the negative fiscal impact of sales tax sourcing laws on these communities, which are vital to Washington's economy and have unique challenges due to their concentration of manufacturing and shipping businesses. The bill also notes that the dedicated funding for manufacturing and warehousing job centers is set to expire on July 1, 2026, prompting the need for new revenue-generating mechanisms.

The bill introduces a new section to chapter 82.14 RCW, allowing authorized cities to impose an additional sales and use tax of up to 0.3 percent. This tax is applicable to taxable events within the city and is intended to fund initiatives that improve community vitality. Authorized cities must engage in a public process when adopting their biennial budgets, including town hall meetings, a dedicated webpage for budget information, and community surveys to gather input on budget priorities. The definition of an "authorized city" includes specific population and industrial valuation criteria. The act is set to take effect on January 1, 2026.