The bill aims to enhance the distribution of state sales tax revenues to local governments without increasing the state or local sales tax rates. It introduces a new section to chapter 82.08 RCW, mandating the Department of Revenue to calculate total sales tax revenues monthly and notify the state treasurer. Subsequently, the state treasurer is required to transfer 20 percent of these revenues to the local sales and use tax account. Additionally, amendments to RCW 82.14.050 outline the procedures for the distribution of these funds, ensuring that local taxing districts receive their share based on the sales tax revenues collected.

Furthermore, the bill specifies that starting January 1, 2026, the state treasurer will distribute the transferred funds to local taxing districts imposing a local sales and use tax in proportion to the sales tax revenues collected for that month. This structured approach aims to provide a consistent and predictable flow of funds to local governments, thereby supporting their financial needs and enhancing local services. The act is set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 82.14.050