The bill establishes a special excise tax of six percent on retail sales of short-term rental lodging, effective January 1, 2026. The revenue generated from this tax will be deposited into the newly created essential affordable housing local assistance account, which is designated for use by local jurisdictions to fund affordable housing programs and housing infrastructure projects. The bill outlines specific conditions under which counties, cities, and towns can utilize these funds, including requirements for housing infrastructure projects to meet certain density and size limitations, as well as stipulations for reducing impact fees proportional to the funding received.

Additionally, the bill amends existing laws related to excise taxes on lodging and clarifies definitions relevant to short-term rentals and housing infrastructure. It also includes provisions for the administration of the new tax, allowing the Department of Revenue to adopt rules for its implementation. The amendments to RCW 67.28.181, 82.14.410, and 82.32.145 include updates to tax rates and definitions, ensuring that the new excise tax is integrated into the existing tax framework without exceeding specified limits.

Statutes affected:
Original Bill: 67.28.181, 82.14.410, 82.32.145