Sales tax sourcing impact

AN ACT Relating to authorizing funding tools to mitigate the 1
impact of sales tax sourcing and enhance community vitality in 2
certain cities that host industrial and warehousing industries that 3
are vital to the statewide economy; adding a new section to chapter 4
82.14 RCW; creating a new section; and declaring an emergency.5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. The legislature finds that additional 7
funding tools are needed to improve community vitality in the 8
industrial and warehousing valley located near the port of Seattle 9
and the port of Tacoma. Sales tax sourcing laws created a significant 10
negative fiscal impact on this community thereby impacting the 11
quality of life of residents in the valley. The valley is a vital job 12
center to Washington state's economy and is one of the most diverse 13
communities in the state. At the same time, with a concentration of 14
warehousing, manufacturing, and shipping businesses, this community 15
experiences negative impacts on resources that other communities do 16
not experience. Furthermore, the legislature recognizes the dedicated 17
funding in RCW 82.14.545 for the manufacturing and warehousing job 18
centers account, RCW 82.14.550, is scheduled to expire on July 1, 19
2026. The legislature hereby authorizes new funding tools for these 20
H-0564.1
HOUSE BILL 1532
State of Washington 69th Legislature 2025 Regular Session
By Representatives Stearns, Entenman, Obras, Gregerson, and Bergquist
Read first time 01/23/25. Referred to Committee on Finance.
p. 1 HB 1532
communities to generate revenue necessary to improve community 1
vitality. 2
NEW SECTION. Sec. 2. A new section is added to chapter 82.14 3
RCW to read as follows: 4
(1) The legislative body of certain authorized cities, as 5
described in subsection (2) of this section, may authorize, fix, and 6
impose a sales and use tax in accordance with the terms of this 7
chapter. 8
(2) The tax authorized in this section is in addition to any 9
other taxes authorized by law and must be collected from those 10
persons who are taxable by the state under chapters 82.08 and 82.12 11
RCW upon the occurrence of any taxable event within a city imposing 12
the tax. The rate of tax equals up to 0.3 percent of the selling 13
price in the case of a sales tax, or a value of article used, in the 14
case of a use tax. 15
(3) Moneys collected under this section may be used for any 16
purpose that improves the vitality of the community in the same 17
manner that general fund revenues may be used. 18
(4) A city using the authority under this section shall engage in 19
the following public process each time it adopts a biennial budget:20
(a) Hold a minimum of three town hall meetings within the city, 21
each at a different geographical location and at a different time of 22
the day, explaining the budget process and providing opportunities 23
for community member dialogue; 24
(b) Provide a webpage outlining the budget development process, 25
the dates for scheduled budget hearings, and where to find budget 26
information; and 27
(c) Conduct a survey to solicit input on budget priorities.28
(5) For purposes of this section, an "authorized city" means a 29
city that: 30
(a) Has a population greater than 120,000; 31
(b) Is located in a county with a population of 1,500,000 or 32
greater; and 33
(c) Has a percentage of total assessed valuation from industrial 34
and warehousing industries that is greater than 25 percent.35
NEW SECTION. Sec. 3. This act is necessary for the immediate 36
preservation of the public peace, health, or safety, or support of 37
p. 2 HB 1532
the state government and its existing public institutions, and takes 1
effect immediately. 2
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p. 3 HB 1532