The bill seeks to adjust the financial framework for transportation funding in Washington State by amending various sections of the Revised Code of Washington (RCW). It establishes new transfer amounts and timelines from the general fund to transportation accounts, including a mandated transfer of $13,987,000 to the Connecting Washington account starting September 2023, with decreasing amounts in subsequent years. Additionally, for fiscal year 2026, the bill requires a transfer of $111,896,000 from the multimodal transportation account to the general fund. It also allows for transfers from the public works assistance account to the move ahead WA account and introduces a new 0.1 percent tax on retail sales and use, designated for the multimodal transportation account beginning July 1, 2027.

Furthermore, the bill modifies tax deferral provisions related to the state route number 520 bridge replacement and HOV project, enabling individuals to defer state and local sales and use taxes on project-related costs. The timeline for repaying deferred taxes is revised to require completion by June 30, 2026, rather than over a 24-year period. It ensures that any nontoll accounts used for deferred tax payments will be reimbursed by toll revenues by December 31, 2050, and clarifies that no interest will accrue on deferred taxes during the deferral period. The bill also allows for accelerated repayment schedules upon request and states that information received by the Department of Revenue will not be confidential. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately.

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