State sales tax revenues

AN ACT Relating to sharing state sales tax revenues with local 1
governments and not increasing the state or local sales tax rate; 2
amending RCW 82.14.050; adding a new section to chapter 82.08 RCW; 3
and providing an effective date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 82.08 6
RCW to read as follows: 7
(1) Each month, the department must calculate the total sales tax 8
revenues collected in the previous month pursuant to this chapter and 9
notify the state treasurer. 10
(2) The state treasurer shall transfer each month 20 percent of 11
the amount in subsection (1) of this section to the local sales and 12
use tax account created in RCW 82.14.050 . 13
Sec. 2. RCW 82.14.050 and 2021 c 178 s 2 are each amended to 14
read as follows: 15
(1) The counties, cities, and transportation authorities under 16
RCW 82.14.045, public facilities districts under chapters 36.100 and 17
35.57 RCW, public transportation benefit areas under RCW 82.14.440, 18
regional transportation investment districts, and transportation 19
benefit districts under chapter 36.73 RCW must contract, prior to the 20
H-0717.2
HOUSE BILL 1778
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dufault, Corry, and Jacobsen
Read first time 02/03/25. Referred to Committee on Appropriations.
p. 1 HB 1778
effective date of a resolution or ordinance imposing a sales and use 1
tax, the administration and collection to the state department of 2
revenue, which must deduct a percentage amount, as provided by 3
contract, not to exceed two percent of the taxes collected for 4
administration and collection expenses incurred by the department. 5
The remainder of any portion of any tax authorized by this chapter 6
that is collected by the department of revenue must be deposited by 7
the state department of revenue in the local sales and use tax 8
account hereby created in the state treasury. Beginning January 1, 9
2013, the department of revenue must make deposits in the local sales 10
and use tax account on a monthly basis on the last business day of 11
the month in which distributions required in (a) of this subsection 12
are due. Moneys in the local sales and use tax account may be 13
withdrawn only for: 14
(a) Distribution to counties, cities, transportation authorities, 15
public facilities districts, public transportation benefit areas, 16
regional transportation investment districts, and transportation 17
benefit districts imposing a sales and use tax; and18
(b) Making refunds of taxes imposed under the authority of this 19
chapter and RCW 81.104.170 and exempted under RCW 82.08.962, 20
82.12.962, 82.08.02565, 82.12.02565, 82.08.025661, or 82.12.025661.21
(2) All administrative provisions in chapters 82.03, 82.08, 22
82.12, and 82.32 RCW, as they now exist or may hereafter be amended, 23
insofar as they are applicable to state sales and use taxes, are 24
applicable to taxes imposed pursuant to this chapter.25
(3) Counties, cities, transportation authorities, public 26
facilities districts, and regional transportation investment 27
districts may not conduct independent sales or use tax audits of 28
sellers registered under the streamlined sales tax agreement.29
(4) Except as provided in RCW 43.08.190 and subsection (5) of 30
this section, all earnings of investments of balances in the local 31
sales and use tax account must be credited to the local sales and use 32
tax account and distributed to the counties, cities, transportation 33
authorities, public facilities districts, public transportation 34
benefit areas, regional transportation investment districts, and 35
transportation benefit districts monthly. 36
(5) Beginning January 1, 2013, the state treasurer must determine 37
the amount of earnings on investments that would have been credited 38
to the local sales and use tax account if the collections had been 39
deposited in the account over the prior month. When distributions are 40
p. 2 HB 1778
made under subsection (1)(a) of this section, the state treasurer 1
must transfer this amount from the state general fund to the local 2
sales and use tax account and must distribute such sums to the 3
counties, cities, transportation authorities, public facilities 4
districts, public transportation benefit areas, regional 5
transportation investment districts, and transportation benefit 6
districts. 7
(6) Repayment of deferred local sales and use taxes due under RCW 8
82.32.558 is subject to the requirements of RCW 82.32.559.9
(7) Beginning January 1, 2026, the state treasurer shall 10
distribute the moneys transferred pursuant to section 1 of this act 11
on a monthly basis. They must be distributed to each local taxing 12
district imposing a local sales and use tax pursuant to chapter 82.14 13
RCW in the same proportion as the sales tax revenues in subsection 14
(1) of this section for the same month of collections.15
NEW SECTION. Sec. 3. This act takes effect January 1, 2026.16
--- END ---
p. 3 HB 1778