Impact fees

AN ACT Relating to incentivizing the substantial reduction or 1
elimination of impact fees; adding a new section to chapter 82.14 2
RCW; and creating a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that impact fees 5
assessed by counties and cities can sometimes act as a barrier to the 6
creation of new housing. The legislature also recognizes that these 7
impact fees fund critical infrastructure needed to support new 8
housing and that cities and counties have few avenues available to 9
raise funds for this infrastructure. Therefore, it is the intent of 10
the legislature to provide alternate funding options to localities to 11
offset some or all of the cost of this critical infrastructure, with 12
the consent of the people in these localities.13
NEW SECTION. Sec. 2. A new section is added to chapter 82.14 14
RCW to read as follows: 15
(1) The governing body of any county or city, while not required 16
by legislative mandate to do so, may, by resolution or ordinance for 17
the purposes authorized in this section, impose a sales and use tax 18
in accordance with this section. The tax authorized in this section 19
is in addition to any other taxes authorized by law and must be 20
S-1334.1
SENATE BILL 5748
State of Washington 69th Legislature 2025 Regular Session
By Senators J. Wilson, Harris, McCune, Goehner, Holy, Warnick, and
Wagoner
Read first time 02/13/25. Referred to Committee on Ways & Means.
p. 1 SB 5748
collected from those persons who are taxable by the state pursuant to 1
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event 2
within such city or county. The rate of tax may not exceed one 3
percent of the selling price in the case of a sales tax, or value of 4
the article used in the case of a use tax. The governing body of any 5
county or city must set the rate of tax at an amount that is 6
generally commensurate with the anticipated cost of public facilities 7
necessitated by new development less anticipated impact fee 8
collections. The governing body of the city or county must review the 9
tax rate every three years. If a county, and any city within the 10
county, impose the tax authorized in this section, the county is not 11
required to provide any credit for the tax imposed by the city.12
(2) The tax authorized in this section may be imposed only if the 13
county or city first adopts by resolution or ordinance a substantial 14
reduction or elimination of impact fees authorized under RCW 15
82.02.050 through 82.02.110. For the purpose of this subsection (2), 16
"substantial reduction" means the schedule of impact fees adopted by 17
the city or county has been modified to reduce impact fee collections 18
on development activity by 50 percent or more. 19
(3) The authority to impose a tax under this subsection is 20
conditionally granted to compensate cities and counties for any costs 21
and losses from the reduction or elimination of impact fees 22
authorized under RCW 82.02.050 through 82.02.110. 23
(4) Taxes collected under this section must be expended for the 24
purposes for which the impact fees reduced or eliminated under this 25
section were originally imposed consistent with RCW 82.02.050 through 26
82.02.110, and specifically earmarked and retained for each type of 27
public facility for which impact fees would have been collected as 28
described in RCW 82.02.070. 29
(5) A governing body of any county or city may not implement any 30
sales or use tax considered within this section without a vote of its 31
people, in which at least a simple majority of 50 percent plus one 32
among those who voted vote in favor of the proposed sales tax offset 33
program. 34
--- END ---
p. 2 SB 5748