The proposed bill establishes a local sales and use tax remittance program aimed at promoting the development of affordable housing in Washington State. It defines "affordable housing" and outlines the criteria for "qualifying projects," which must dedicate at least 50% of residential units to low or moderate-income households for a minimum of 40 years. The bill allows local governing authorities to create a remittance program through a resolution, detailing the application, approval, and appeals processes for eligible organizations, which include nonprofit and for-profit developers, public housing authorities, and others. The governing authority is responsible for issuing conditional certificates of program approval and must rule on applications within 90 days.

Additionally, the bill specifies that eligible organizations can apply for remittance of local sales and use taxes paid on qualifying projects, with a remittance equal to a percentage of the local taxes imposed. It mandates annual reporting by the eligible organizations for 40 years to ensure compliance with the affordable housing requirements. The bill also includes provisions for the transfer of project ownership, stating that the tax exemption remains valid as long as the successor meets eligibility criteria. The act is set to take effect on January 1, 2027.