Local sales and use tax

AN ACT Relating to creating a local sales and use tax; adding a 1
new section to chapter 82.14 RCW; creating a new section; and 2
providing an effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. (1) The legislature finds that cities and 5
counties across Washington state are experiencing significant 6
financial challenges, driven by rising costs for essential services 7
such as public safety, infrastructure maintenance, and social 8
services. These pressures have made it increasingly difficult for 9
local governments to meet the needs of their communities effectively.10
(2) The legislature further finds that inflation and rising costs 11
are placing additional financial strain on consumers. Families across 12
the state are grappling with tighter budgets, making it more critical 13
than ever to implement policies that avoid placing additional 14
financial burdens on individuals and households. 15
(3) Therefore, it is the intent of the legislature to authorize a 16
city and county option sales and use tax that is credited against the 17
state rate. This policy ensures that local governments can secure the 18
resources necessary to meet critical infrastructure and service 19
demands without increasing the overall tax burden on consumers, 20
thereby supporting both fiscal responsibility and economic stability.21
H-0288.1
HOUSE BILL 1100
State of Washington 69th Legislature 2025 Regular Session
By Representative Jacobsen
Prefiled 12/19/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1100
NEW SECTION. Sec. 2. A new section is added to chapter 82.14 1
RCW to read as follows: 2
(1) The legislative authority of any county or city, may, by 3
resolution or ordinance, impose a sales and use tax in accordance 4
with the terms of this section. The tax is in addition to other taxes 5
authorized by law and must be collected from those persons who are 6
taxable by the state under chapters 82.08 and 82.12 RCW upon the 7
occurrence of any taxable event within the city or county.8
(2) The rate of tax under this section is equal to 0.5 percent of 9
the selling price in the case of a sales tax, or value of the article 10
used, in the case of a use tax. 11
(3) The combined total tax levied under this section may not be 12
greater than 0.5 percent. If both a county and a city impose a tax 13
under this section, the tax imposed by a city must be credited 14
against the tax imposed by a county. 15
(4) The tax authorized under this section must be deducted from 16
the amount of tax otherwise required to be collected or paid to the 17
department under chapter 82.08 or 82.12 RCW. The department must 18
perform the collection of taxes on behalf of the city or county at no 19
cost to the city or county. 20
NEW SECTION. Sec. 3. This act takes effect January 1, 2026.21
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p. 2 HB 1100