The bill amends RCW 82.02.050 to enhance the framework for impact fees imposed by counties, cities, and towns on new development. It establishes that these local governments must adopt a system for the deferred collection of impact fees for single-family residential construction by September 1, 2026. The new provisions require applicants to execute a promissory note for the full value of the impact fees, which must be recorded with the county auditor. The bill specifies the conditions under which the impact fees are due, including at the time of certificate of occupancy, closing of the first sale, or final inspection. Additionally, it introduces penalties for late payments and clarifies that the responsibility for the fees lies with the applicant.

Furthermore, the bill repeals RCW 43.31.980, which previously mandated an annual report on impact fees. It also clarifies that impact fees can only be imposed for system improvements that are reasonably related to new development and must be used for public facilities as defined in RCW 82.02.090. The bill emphasizes the need for a balance between impact fees and other public funding sources, ensuring that new developments contribute fairly to the costs of necessary infrastructure improvements.

Statutes affected:
Original Bill: 82.02.050
Substitute Bill: 82.02.050, 43.31.980