This 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 from the excise tax.

Additionally, the bill amends existing laws related to lodging taxes and trust fund tax liabilities. It clarifies definitions related to housing infrastructure and short-term rentals, and it modifies the maximum allowable tax rates for municipalities. The legislation also includes provisions for the administration of the new tax and the responsibilities of local governments in managing the funds. Overall, the bill aims to enhance funding for affordable housing initiatives while ensuring that local jurisdictions adhere to specific guidelines in their use of the tax revenue.

Statutes affected:
Original Bill: 67.28.181, 82.14.410, 82.32.145