The proposed bill aims to enhance funding for Washington state's wildfire response, forest restoration, and community resilience account by modifying the existing tax structure related to loan interest. Specifically, it amends RCW 82.04.29005 to redefine "community banks" in alignment with federal standards, changing the criteria from being located in "ten or fewer states" to having assets of $10 billion or fewer. This adjustment is intended to ensure that the tax benefits originally designed to support local financial institutions are not disproportionately benefiting larger, out-of-state banks. The bill also establishes a mechanism for transferring increased tax revenues from the general fund to the wildfire response account, thereby reinforcing the state's commitment to wildfire preparedness and mitigation.

Additionally, the bill includes provisions for the Department of Revenue to estimate the revenue increases resulting from these modifications and mandates the state treasurer to transfer these funds to the wildfire response account annually. The act is set to take effect on July 1, 2026, and is officially titled the "wildfire alleviation support act." This legislative effort reflects a broader recognition of the financial implications of wildfires and the need for proactive measures to mitigate their impact on communities and the environment.

Statutes affected:
Original bill: 82.04.29005