The proposed 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, which can be up to one percent, is intended to offset the costs associated with public facilities necessitated by new development, while also requiring a review of the tax rate every three years.

Importantly, the imposition of this tax is contingent upon the local governing body first adopting a resolution or ordinance that results in a substantial reduction of impact fees by at least 50%. The bill mandates that any taxes collected must be used specifically for the purposes for which the original impact fees were intended, ensuring that funds are allocated appropriately. Additionally, the implementation of this tax requires a vote from the local populace, with a simple majority needed for approval.