The proposed bill establishes a sales and use tax remittance program in Washington State to support the development of affordable housing. 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. The program is set to commence on January 1, 2026, and will be in effect until December 31, 2035, allowing for interlocal agreements between cities and counties to pool resources.

Additionally, the bill stipulates that eligible organizations must obtain a conditional certificate of program approval and adhere to local regulations to apply for tax remittance. It mandates that remittance funds be utilized for specific affordable housing-related purposes, such as construction and operational costs. The bill requires annual reporting from eligible organizations on the status of affordable housing units for 40 years post-occupancy, as well as annual confirmations from cities and counties regarding compliance with tax remittance criteria. It also outlines conditions for revoking tax exemptions and ensures that ownership transfers do not affect the exemptions if the new owner meets eligibility requirements. A performance evaluation of the tax preferences is scheduled for review by December 31, 2033.