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WA SB5884

WA SB5884
Expanding the limited sales and use tax incentive program to encourage redevelopment of underutilized property.


summary

Introduced
01/12/2026
In Committee
01/22/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT Relating to expanding the limited sales and use tax 2 incentive program to encourage redevelopment of underutilized 3 property; amending RCW 82.92.007, 82.92.010, 82.92.020, 82.92.040, 4 82.92.070, 82.92.090, 82.92.100, 82.92.110, and 82.92.120; amending 5 2022 c 241 s 15 (uncodified); adding a new section to chapter 82.92 6 RCW; and creating a new section. 7

AI Summary

This bill expands an existing program that offers a deferral on sales and use taxes to encourage the redevelopment of underutilized property, specifically by broadening the definition of "underdeveloped property" to include vacant, partially used, or underutilized land suitable for affordable housing development, and by allowing for reduced affordability requirements in designated "areas of reduced affordability requirements" within urban centers. The bill also modifies the criteria for approving projects, allowing for alternative affordable housing commitments, and adjusts the timeline for construction completion and reporting requirements. Additionally, it clarifies the process for transferring ownership of projects and outlines penalties for non-compliance, including a tiered repayment schedule for deferred taxes if a project no longer qualifies within ten years of occupancy. The overall goal is to incentivize the creation of more affordable housing and employment opportunities in targeted urban areas.

Committee Categories

Budget and Finance, Housing and Urban Affairs

Sponsors (7)

Last Action

Public hearing in the Senate Committee on Ways & Means at 4:00 PM. (on 02/02/2026)

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