Engrossed Substitute House Bill 1408 adds new sections to chapters 82.08, 82.12, and 43.167 RCW to redirect a portion of the state retail sales tax collected at specified large event facilities to a community preservation and development authority account. Beginning January 1, 2026, 30 percent of the estimated state tax imposed under RCW 82.08.020(1) on each retail sale at a "qualified facility" must be deposited quarterly into the authority account within three months after the quarter ends. Beginning January 1, 2027, 30 percent of the state tax actually collected at qualified facilities must be deposited quarterly and split equally between an operating subaccount and a capital subaccount. The bill defines a "qualified facility" as either an open-air stadium with at least 68,000 fixed seats and 300,000 square feet of related event space, or a facility with at least 47,000 seats for its main use and a retractable roof. This is a new statutory funding and tax-allocation law and a procedural change to how revenue from retail sales at specified facilities is distributed; it does not create a new crime or change criminal penalties. The act requires each community preservation and development authority organized under the chapter to submit a biennial report to appropriate legislative committees by November 1 of each odd-numbered year on strategic plans, use of funding, and community impacts. The Joint Legislative Audit and Review Committee must review the funding and report findings to the legislature by December 1, 2034, and the legislature intends to extend the funding expiration if JLARC's review finds certain specified outcomes. The act takes effect immediately, expires January 1, 2037, and specifically cites RCW 82.08.020(1) and RCW 43.167.040. The extracted text does not include the statutory provisions that create or fully define community preservation and development authorities, nor does it include the detailed contents or administration of the community preservation and development authority account and its subaccounts in RCW 43.167.040. The meaning and treatment of "estimated revenue" (2026) versus "revenue" (2027), the practical procedures for administering or transferring the deposits, and eligibility, formation, or governance details for the authorities are not provided in the extracted facts.

Beginning in 2026, a substantial share (30%) of the state sales tax collected on retail transactions at very large stadiums meeting the bill’s “qualified facility” tests will be routed quarterly into local community preservation and development authority accounts. For those authorities this creates a new, predictable revenue stream—by 2027 the money will be split evenly between operating and capital subaccounts—giving counties with such authorities more money to address health, safety, housing, and economic impacts near major public facilities; the state’s regular pool of sales tax receipts will be reduced by the same amount. The requirement to deposit estimated amounts in 2026 and actual amounts in 2027 creates timing and reconciliation needs, but the precise transfer procedures and who administratively makes them are not specified here. Those authorities will take on reporting and oversight duties, delivering a biennial strategic and impact report to the legislature, and the legislature’s audit committee will review outcomes by December 2034 to decide whether to extend the program; otherwise the funding expires January 1, 2037. The extract does not include key details about how community preservation and development authorities are created or governed, how the account and subaccounts are administered, or how the 2026 estimates will be reconciled with later actuals, leaving some implementation responsibilities and fiscal impacts uncertain.