The proposed bill establishes a sales and use tax remittance program in Washington State to promote affordable housing development. It defines key terms such as "affordable housing," "eligible organization," and "qualifying project," which requires that at least 50% of residential units be allocated to low-income households for a minimum of 40 years. The bill outlines the process for local governing authorities to create the remittance program, including public hearing requirements and application procedures for eligible organizations. It mandates that local authorities must decide on applications within 90 days and provides an appeals framework for denied applications. The program allows eligible organizations to receive a portion of state and local sales and use taxes paid on qualifying projects, with specific allocations for both the organization and local government, and sets an expiration date for the program in 2035.

Additionally, the bill introduces provisions for interlocal agreements among eligible cities and counties to pool remittance funds. Organizations benefiting from tax exemptions must file annual reports for 40 years post-occupancy, detailing the status of affordable housing units and compliance with usage requirements. Local governments are also required to report annually starting in 2026 to confirm ongoing compliance of qualifying projects. If an organization discontinues compliance or a project is disqualified, the exempted taxes will be due immediately with retroactive interest. Ownership transfers of qualifying projects will not affect the exemption if the new owner meets eligibility criteria. The bill includes a performance evaluation statement due by December 31, 2033, and is set to take effect on January 1, 2026, establishing a new chapter in Title 82 RCW.