Energy facility transfer/tax

AN ACT Relating to imposing a local option tax on the sale or 1
transfer of renewable energy facilities; adding a new section to 2
chapter 82.46 RCW; creating a new section; and providing an effective 3
date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that wind and solar 6
energy production companies often generate substantial revenue from 7
operations in rural communities without reinvesting those funds 8
locally. These companies frequently transfer earnings out-of-state, 9
leaving limited opportunities for economic development within the 10
regions where they operate.11
The legislature finds that the lack of retained revenue from 12
renewable energy projects exacerbates economic challenges in rural 13
areas, including underfunded infrastructure, limited access to 14
education and health care resources, and diminished prospects for 15
local business growth. As a result, the economic benefits of hosting 16
renewable energy facilities are not equitably shared with the 17
communities that support their operations. 18
Therefore, the legislature intends to enact legislation that 19
secures a new revenue option that would be supported by wind and 20
solar production companies for rural communities to reinvest. By 21
H-1310.1
HOUSE BILL 1981
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dye and Klicker
Read first time 02/14/25. Referred to Committee on Finance.
p. 1 HB 1981
doing so, the legislature aims to create a more equitable 1
distribution of benefits and foster long-term prosperity in these 2
regions. 3
NEW SECTION. Sec. 2. A new section is added to chapter 82.46 4
RCW to read as follows: 5
(1) The legislative authority of any county may impose an 6
additional excise tax on the purchase and sale or transfer of a 7
controlling interest of a renewable energy facility. The tax must be 8
imposed if approved by a majority of the voters of the taxing 9
district voting on the proposition at a general election held within 10
the county or at a special election within the county called by the 11
county for the purpose of submitting such proposition to the voters.12
(2) The tax rate is three percent of the selling price of the 13
renewable energy facility and must be assessed on the seller. The 14
proceeds of this tax must be considered general county revenues.15
(3) For the purposes of this section, "renewable energy" has the 16
same meaning as in RCW 82.96.010. 17
NEW SECTION. Sec. 3. This act takes effect January 1, 2026.18
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p. 2 HB 1981