Bill > HB1650

This bill amends existing Washington state law to expand the definition of "capital projects" that can be funded through local real estate excise taxes (REET) to include specific airport infrastructure projects. The bill allows counties and cities to use real estate excise tax revenues to fund capital improvements for two categories of airports: (1) airports included in the Washington state aviation system plan, and (2) airports in the national integrated airport systems with fewer than 10,000 annual passengers. Importantly, the bill explicitly excludes fuel system installations or improvements for leaded fuel from qualifying as capital projects. The changes apply to both the first and second tier of local real estate excise taxes, which can be levied at rates up to 0.25% and 0.5% respectively. This modification provides local governments with more flexibility in using real estate excise tax revenues to support local airport infrastructure, while maintaining existing restrictions on how these funds can be used. The bill continues to require that these tax revenues be used specifically for capital projects identified in a comprehensive capital facilities plan.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1650&Year=2025&Initiative=false