Bill > HB1778

This bill establishes a new mechanism for sharing state sales tax revenues with local governments without increasing sales tax rates. Specifically, the bill requires the state Department of Revenue to calculate the total sales tax revenues collected each month and notify the state treasurer, who must then transfer 20 percent of those revenues to the local sales and use tax account. Starting January 1, 2026, the state treasurer will distribute these funds to local taxing districts that impose a local sales and use tax, with the distribution proportion based on their share of sales tax revenues for that month. The bill maintains existing provisions for administrative costs and does not change the overall sales tax rate. The legislation aims to provide a consistent and proportional method for sharing state sales tax revenues with local governments, potentially helping to support local infrastructure, services, and public transportation needs. The changes will take effect on January 1, 2026, allowing time for local governments and state agencies to prepare for the new revenue-sharing approach.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1778&Year=2025&Initiative=false