wa-law.org > bill > 2025-26 > SB 5748 > Original Bill
The legislature finds that impact fees assessed by counties and cities can sometimes act as a barrier to the creation of new housing. The legislature also recognizes that these impact fees fund critical infrastructure needed to support new housing and that cities and counties have few avenues available to raise funds for this infrastructure. Therefore, it is the intent of the legislature to provide alternate funding options to localities to offset some or all of the cost of this critical infrastructure, with the consent of the people in these localities.
The governing body of any county or city, while not required by legislative mandate to do so, may, by resolution or ordinance for the purposes authorized in this section, impose a sales and use tax in accordance with this section. The tax authorized in this section is in addition to any other taxes authorized by law and must be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city or county. The rate of tax may not exceed one percent of the selling price in the case of a sales tax, or value of the article used in the case of a use tax. The governing body of any county or city must set the rate of tax at an amount that is generally commensurate with the anticipated cost of public facilities necessitated by new development less anticipated impact fee collections. The governing body of the city or county must review the tax rate every three years. If a county, and any city within the county, impose the tax authorized in this section, the county is not required to provide any credit for the tax imposed by the city.
The tax authorized in this section may be imposed only if the county or city first adopts by resolution or ordinance a substantial reduction or elimination of impact fees authorized under RCW 82.02.050 through 82.02.110. For the purpose of this subsection (2), "substantial reduction" means the schedule of impact fees adopted by the city or county has been modified to reduce impact fee collections on development activity by 50 percent or more.
The authority to impose a tax under this subsection is conditionally granted to compensate cities and counties for any costs and losses from the reduction or elimination of impact fees authorized under RCW 82.02.050 through 82.02.110.
Taxes collected under this section must be expended for the purposes for which the impact fees reduced or eliminated under this section were originally imposed consistent with RCW 82.02.050 through 82.02.110, and specifically earmarked and retained for each type of public facility for which impact fees would have been collected as described in RCW 82.02.070.
A governing body of any county or city may not implement any sales or use tax considered within this section without a vote of its people, in which at least a simple majority of 50 percent plus one among those who voted vote in favor of the proposed sales tax offset program.