This 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, the bill amends RCW 82.14.050 to establish a framework for the distribution of these funds to local taxing districts, ensuring that they receive their share of the sales tax revenues in proportion to the amounts collected.

Furthermore, the bill specifies that starting January 1, 2026, the state treasurer will distribute the transferred funds on a monthly basis to local taxing districts that impose a local sales and use tax, based on the same proportions as the sales tax revenues collected. This legislative change is designed to provide a more consistent and predictable flow of sales tax revenue 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