This bill creates a new chapter in Title 82 RCW establishing a local sales and use tax remittance program that cities or counties may adopt by resolution to support the development of affordable housing. Under the program, materials and labor for a qualifying project are not subject to the tax in RCW 82.14.030; eligible organizations must first pay state and local sales and use taxes and then apply to the local administrative official or committee for remittance of 100 percent of the local sales and use taxes paid that were imposed by the city or county that authorized the program. The act takes effect January 1, 2027, and remittances apply to qualifying projects receiving a certificate of completion on or before December 31, 2036. The bill is primarily a procedural and tax-remittance change rather than a criminal or penalty change. It sets application and approval procedures (application on adopted forms, verification by oath, application fee limited to administrative costs), public hearing and notice requirements for adopting a program, a 90-day decision deadline for administrative officials, issuance of conditional certificates of program approval and later certificates of completion, and post-occupancy and reporting requirements (completion statements within 30 days of certificate of occupancy and annual reports for 40 years). Key defined terms provided include affordable housing income thresholds, qualifying project criteria (at least 50% of units for lowor moderate-income households and a 40-year affordability requirement), and eligible organizations (nonprofit and for-profit developers, public housing authorities, public development authorities, and others eligible under rules of the Washington State Housing Finance Commission). The bill also establishes enforcement and recapture procedures: remitted taxes become immediately due if a portion of a qualifying project is changed so as to disqualify it or if an ownership transfer is not timely reported, the city or county must assess interest retroactive to the date of remittance but not penalties, and the debt is not extinguished by insolvency; tax-recapture provisions expire 40 years after the certificate of completion. Appeal routes include local administrative appeal to the governing authority (with the applicant bearing the burden to show lack of substantial evidence) and the possibility of superior court review under RCW 34.05.510–34.05.598 for remittance denials, subject to the local ordinance and filing deadlines. Some text and procedural specifics are missing from the provided extracts—most notably fuller details of the remittance mechanics, certain referenced program rules, and the end of a partially quoted provision—so those particulars are uncertain from the extracted material.

If enacted, cities and counties could offer a program that refunds 100% of the local sales and use taxes paid on materials and construction labor for qualifying affordable housing projects, starting January 1, 2027 and available for projects that receive a certificate of completion by December 31, 2036. That creates a real cash incentive for nonprofit and for-profit developers, housing authorities, and similar sponsors to build projects that dedicate at least half their units to lowor moderate-income households and keep those units affordable for 40 years, but developers must pay state and local taxes up front, meet strict application and timing rules (including finishing construction within three years unless extended), file a certificate of completion and yearly reports for 40 years, and face immediate tax recapture with interest if the project’s use or ownership changes without proper notice. Local governments will need to run hearings, process applications and remittance claims within 90 days (with limited extensions), publish notices, issue conditional and final certificates, and enforce long-term compliance; they can charge applicants fees to cover administration but also take on enforcement duties and potential legal appeals to superior court. Important operational details are not in the extracted text—such as specific forms, some eligibility rules referenced to the state housing finance commission, and other procedural guidance—so how smoothly cities/counties and developers can implement and administer the program remains unclear.