House Bill H-0288.1 (House Bill 1100), 69th Legislature, 2025 Regular Session, by Representative Jacobsen, adds a new section to chapter 82.14 RCW authorizing any city or county legislative authority to impose a local sales and use tax by ordinance or resolution. The permitted rate is 0.5 percent of the selling price for sales or 0.5 percent of the value of the article for use, and the combined total tax levied under the new section may not exceed 0.5 percent. If both a county and a city impose the tax, the tax imposed by a city must be credited against the tax imposed by a county. The bill requires that the tax imposed under the new section be deducted from amounts otherwise required to be collected or paid under chapters 82.08 and 82.12 RCW, and directs the (unspecified) department to perform collection of the tax on behalf of the city or county at no cost to the local government. Legislative findings in the bill state the intent is to authorize a local option sales and use tax that is credited against the state rate so local governments can secure resources without increasing the overall tax burden on consumers. The act takes effect January 1, 2026. The text does not define the term "department," does not provide detailed mechanics for how the local tax is credited against the state rate, and does not specify procedural details for adopting ordinances or resolutions, revenue allocation, reporting, enforcement, or other administrative processes.

If enacted, starting January 1, 2026 cities and counties would be able to adopt a half‑percent local sales and use tax option that replaces up to 0.5% of what would otherwise be state sales/use tax, letting local governments raise revenue for services without increasing the total tax consumers pay. The state department named in the bill would handle collection on behalf of the local governments at no cost to those governments, and businesses and other taxable persons would have that local amount deducted from the state tax they otherwise remit under existing state sales and use tax laws. The biggest direct impacts are for city and county finance officials, who gain a new, optional revenue tool and must decide whether to enact it, and for businesses, which will face a change in how remittances are calculated though consumer rates should not rise. The bill leaves key implementation details unclear—most importantly which agency is the “department,” how the crediting against the state rate will be operationalized, and the exact timing and administrative steps for local ordinances—so practical rollout, reporting, and enforcement processes remain uncertain.