The bill seeks to adjust the financial framework for transportation funding in Washington State by amending several sections of the Revised Code of Washington (RCW). It introduces new transfer amounts for the Connecting Washington account, starting with $13,987,000 from September 2023 to June 2025, and establishes a transfer of $111,896,000 from the multimodal transportation account to the general fund for fiscal year 2026. Future transfers to the Connecting Washington account will decrease over time, and there will be mandated annual transfers to the Move Ahead WA flexible account. Additionally, the bill modifies tax provisions to require that a portion of retail sales and use taxes collected be deposited into the multimodal transportation account starting July 1, 2027, and allows for transfers from the public works assistance account to support public works projects.

Moreover, the bill revises tax deferral provisions for the construction of the state route number 520 bridge replacement and HOV project, enabling individuals involved in the project to apply for deferral of state and local sales and use taxes on related costs. The Department of Revenue is responsible for approving applications within 60 days, and individuals must complete their payments by June 30, 2026, with reimbursement from toll revenues by December 31, 2050. The bill clarifies that no interest will be charged on deferred taxes during the deferral period, although penalties for late payments may apply, and it ensures that all applications submitted are not confidential and subject to public disclosure. Certain provisions of the bill are deemed necessary for the immediate preservation of public peace, health, or safety, allowing for immediate enactment.

Statutes affected:
Original Bill: 82.32.385, 47.56.165, 82.21.030, 82.08.020, 82.12.020
Substitute Bill: 82.32.385, 47.56.165, 82.21.030, 82.08.020, 82.12.020, 82.08.010, 47.01.412
Second Substitute: 82.32.385, 82.08.020, 82.12.020, 82.08.010, 47.01.412
Bill as Passed Legislature: 82.32.385, 82.08.020, 82.12.020, 82.08.010, 47.01.412
Session Law: 82.32.385, 82.08.020, 82.12.020, 82.08.010, 47.01.412