The proposed bill aims to enhance food access in underserved communities in Washington State by providing incentives for grocery stores, particularly those serving low-income households and communities of color. It seeks to address barriers to food access by amending existing business and occupation tax laws, requiring cities to adopt a model ordinance that includes preferential rates for grocery stores. The bill clarifies the definitions of "sale at retail" and "retail sale," excluding sales made to grocery stores and other food retailers, thereby supporting the development and preservation of grocery stores in areas where market forces have failed. Additionally, the bill establishes a framework for local governments to create property tax exemption programs for grocery stores in designated underserved community zones. It outlines the criteria for these zones and empowers local authorities to offer property tax exemptions for existing, rehabilitated, or newly constructed grocery stores. The application process for tax exemptions is detailed, including a 90-day approval timeline and provisions for appeals. The bill also introduces tax credits for grocery stores in these areas, effective January 1, 2027, with a cap of $5 million annually statewide, and exempts certain types of grocery stores from specific tax obligations. The provisions are set to expire on January 1, 2037, with the act taking effect on July 1, 2026.

Statutes affected:
Original bill: 35.102.040, 82.04.050