The proposed bill establishes a sales and use tax remittance program in Washington State to support the development of affordable housing. It defines eligible organizations, including nonprofit and for-profit developers and public housing authorities, and outlines the procedures for local governing authorities to create the remittance program. The bill details the application, approval, and appeals processes for organizations seeking tax remittance for projects that commit to providing affordable housing for low-income households. Starting January 1, 2026, eligible organizations can receive 50% of state and local sales and use taxes paid on qualifying projects, with the remaining 50% allocated to the authorizing city or county. The remittance funds must be used for specific affordable housing purposes and the program will expire on December 31, 2035.

Additionally, the bill encourages collaboration between cities and counties through interlocal agreements to pool resources from remittance programs. It requires eligible organizations to submit annual reports on the status of affordable housing units for 40 years after receiving a certificate of occupancy, while cities and counties must report annually to confirm ongoing compliance with tax remittance criteria. The bill also outlines conditions for revoking tax exemptions and clarifies that ownership transfers do not affect these exemptions if the new owner meets eligibility requirements. A performance statement is included to assess the effectiveness of the tax preferences, with a review scheduled for December 31, 2033. The act is set to take effect on January 1, 2026.