This bill aims to provide new funding tools to enhance community vitality in cities that host significant industrial and warehousing industries, particularly those near the ports of Seattle and Tacoma. It recognizes the negative fiscal impact of sales tax sourcing laws on these communities, which are vital to Washington's economy and home to a diverse population. The bill introduces a new section to chapter 82.14 RCW, allowing cities with populations over 120,000 in counties with populations of 1.5 million or more to impose a sales and use tax of up to 0.3 percent, provided that more than 25 percent of the city's assessed valuation is zoned for industrial or warehousing uses. The tax can only be imposed starting July 1, 2025, and is intended to be used for improving community vitality.

Additionally, the bill mandates a public engagement process for cities adopting a biennial budget, which includes holding town hall meetings, providing budget information online, and conducting surveys to gather public input on budget priorities. The tax collected will be credited against state taxes and will be administered by the state department at no cost to the cities. The act is declared necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately.