This bill amends RCW 82.04.050 to explicitly classify the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the purposes of business and occupation taxes, as well as sales and use taxes. It clarifies that while the rental or lease of real property is generally presumed to be a rental or lease, the rental or lease of individual storage space is treated differently and is included in the definition of "sale at retail" or "retail sale." This change aims to ensure that self-service storage facilities are subject to the same tax regulations as other retail transactions, providing clarity and consistency in taxation.

Additionally, the bill expands the definition of "sale at retail" or "retail sale" to encompass various recreational activities and services, such as golfing and amusement park admissions, while specifying that certain charges, like those for admission to fairs and educational institution activities, are not classified as retail sales. It also introduces new definitions for services related to construction and land clearing. Importantly, the bill mandates that revenue generated from these changes be allocated to agencies and programs focused on cooperatively owned manufactured home communities and affordable housing initiatives, with an effective date set for January 1, 2026.