The proposed bill aims to enhance access to affordable and nutritious food in underserved communities in Washington State by providing tax exemptions and support for grocery stores operating in these areas. It introduces new sections to existing tax laws, including exemptions from state and local sales taxes for grocery stores located in designated underserved community zones. The bill also allows local governing authorities to create property tax exemption programs to support existing grocery stores and encourage the establishment of new ones. Key provisions include criteria for defining underserved community zones based on income and access to food, as well as a model ordinance for cities regarding business and occupation taxes.

Additionally, the bill outlines a framework for tax incentives, including a tax credit for grocery stores in these zones starting January 1, 2027, and property tax exemptions for up to 30 years for qualifying stores. It mandates that cities and counties report annually on the effectiveness of these programs and establishes an application process for property owners seeking tax exemptions. The legislation also includes provisions for correcting tax rolls and allows for appeals regarding property valuations. The entire chapter is set to expire on January 1, 2037, with the act taking effect on January 1, 2027.

Statutes affected:
Original bill: 35.102.040, 82.04.050
Substitute bill: 35.102.040, 35.21.710