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 legislature 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 to support community vitality. This tax is applicable to taxable events within the city and is in addition to existing taxes. The funds collected can be used for various community improvement purposes, and cities must engage in a public process, including town hall meetings and surveys, when adopting their biennial budgets. An "authorized city" is defined as one with a population over 120,000, located in a county with a population of 1.5 million or more, and having over 25 percent of its assessed valuation from industrial and warehousing industries. The act is declared an emergency and takes effect immediately.