The bill seeks to enhance local governments' tax resources and flexibility by amending various sections of the Revised Code of Washington (RCW) concerning real estate excise taxes, public utility taxes, and local sales and use taxes. It allows counties and cities to impose additional excise taxes on real property sales, capped at 0.25% for capital projects, with expanded revenue uses for homeless facilities and affordable housing. A new county public utility tax is introduced, capped at 3%, with a portion of the revenue designated to assist low-income residents with utility costs. Additionally, a local sales and use tax, not exceeding 0.01%, is established to fund services for children and families, while counties can impose a sales and use tax for housing services at a maximum rate of 0.1%.

The bill also amends existing property tax laws to ensure that the combined rate of regular property tax levies does not exceed one percent of property value, introducing reductions for various levies if this limit is exceeded. It modifies the process for exceeding property tax levy limitations, allowing taxing districts to propose levies beyond statutory limits with voter approval and extending the allowable period for consecutive levies from six to ten years. Furthermore, it clarifies the allocation of proceeds from a sales and use tax on rental cars, ensuring funds are directed towards public sports facilities and not subsidizing professional sports teams. The legislation aims to provide clarity and structure to the taxation process while ensuring funds are used for designated public purposes.

Statutes affected:
Original bill: 82.46.075, 82.14.530, 71.20.110, 84.52.043, 36.62.090, 84.52.010, 84.55.005, 84.55.050, 82.14.049