The bill aims to incentivize counties and cities in Washington to substantially reduce or eliminate impact fees, which can hinder the development of new housing. It introduces a new section to chapter 82.14 RCW, allowing local governing bodies to impose a sales and use tax to help fund critical infrastructure needed for new housing developments. This tax can be set at a rate not exceeding one percent and must be reviewed every three years. However, the imposition of this tax is contingent upon the local government first adopting a resolution or ordinance that significantly reduces impact fees by at least 50%.

Additionally, the bill stipulates that any taxes collected must be used specifically for the purposes for which the original impact fees were intended, ensuring that funds are allocated to the appropriate public facilities. Importantly, the governing body must seek approval from the local electorate, requiring a simple majority vote in favor of the proposed tax before implementation. This approach aims to balance the need for infrastructure funding with the goal of making housing development more feasible.