The bill seeks to adjust the statutory fund transfers and revenue allocations for transportation in Washington State by amending several sections of the Revised Code of Washington (RCW). It specifically modifies RCW 82.32.385 to establish new transfer amounts for the fiscal years 2023 through 2031, mandating the state treasurer to transfer $13,987,000 to the connecting Washington account from September 2023 to June 2025, and $111,896,000 from the multimodal transportation account to the general fund in fiscal year 2026. Additionally, it sets annual transfers of $31,000,000 to the move ahead WA flexible account from fiscal year 2026 through fiscal year 2038, while also introducing new funding mechanisms for public works projects and amending tax collection provisions related to the multimodal transportation account.

Furthermore, the bill revises tax deferral provisions for the state route number 16 corridor improvements and the state route number 520 bridge replacement and HOV project. It allows for the deferral of state and local sales and use taxes for project-related costs, with the Department of Revenue required to approve applications within 60 days. The timeline for repayment of deferred taxes is adjusted to require completion by June 30, 2026, and emphasizes reimbursement of nontoll accounts by toll revenues by December 31, 2050. The bill also clarifies that no interest will accrue on deferred taxes during the deferral period, although penalties for late payments may apply, and it ensures that the debt for deferred taxes remains intact despite any changes in ownership or insolvency of involved entities. The provisions of the bill are deemed necessary for the immediate preservation of public peace, health, or safety, and thus take 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