Bill > HB1791

This bill increases the flexibility of local real estate excise tax (REET) funding sources by modifying existing laws to provide counties and cities with more options for using tax revenues. Key provisions include allowing local governments to use up to 35 percent of available funds (previously 25 percent) for operating, maintaining, and supporting existing capital projects, and expanding the definition of capital projects to include a broader range of public investments. The bill specifically allows funds to be used for facilities serving those experiencing homelessness, affordable housing projects, and other community purposes such as health clinics, senior day care, food banks, community centers, and early learning facilities. Beginning January 1, 2026, the bill also introduces a new provision that allows the sale of qualified space in affordable housing developments to nonprofit organizations, housing authorities, or public corporations for exempt community purposes. The legislation aims to provide local governments with more flexibility in using real estate excise tax revenues to address community needs, particularly in housing and social services, while maintaining restrictions on how these funds can be used.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1791&Year=2025&Initiative=false