Bill > HB1532

This bill creates a new funding mechanism for certain cities with significant industrial and warehousing industries to help mitigate the negative fiscal impacts of sales tax sourcing laws. Specifically, the bill allows eligible cities to impose an additional sales and use tax of up to 0.3 percent, which can be used for any purpose that improves community vitality. To be considered an "authorized city," a municipality must have a population over 120,000, be located in a county with at least 1.5 million residents, and have more than 25 percent of its total assessed valuation coming from industrial and warehousing industries. The bill requires cities using this tax authority to engage in a robust public engagement process when developing their budget, including holding at least three town hall meetings at different times and locations, creating a budget information webpage, and conducting a community survey to solicit input on budget priorities. The legislation recognizes the economic importance of industrial valleys near the ports of Seattle and Tacoma and aims to provide these communities with additional revenue tools to address local needs. The new tax authority will take effect on January 1, 2026, and complements existing funding mechanisms for manufacturing and warehousing job centers that are set to expire on July 1, 2026.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1532&Year=2025&Initiative=false