Bill > SB5518

This bill addresses funding challenges for cities with significant industrial and warehousing zones, specifically targeting cities with over 120,000 residents in counties with populations of 1.5 million or more. The legislation allows such cities where more than 25% of assessed valuation is zoned for industrial or warehousing uses to impose an additional sales and use tax of up to 0.3%, which will be credited against state taxes. This new tax can only be implemented starting July 1, 2025, and can continue for up to 20 years, with the revenue intended to improve community vitality. The bill requires extensive public engagement for budget development, including holding at least three town hall meetings at different locations and times, creating a budget information webpage, and conducting a community survey to gather input on budget priorities. The legislature recognizes that the current dedicated funding for manufacturing and warehousing job centers is set to expire on July 1, 2026, and aims to provide new funding tools for these economically significant and diverse communities, particularly in the industrial valleys near the ports of Seattle and Tacoma. The tax would be collected by the state at no cost to the city and is designed to support communities that experience unique challenges due to their concentration of industrial and warehousing businesses.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5518&Year=2025&Initiative=false