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Pu b I is hed on Wa s h ington Depa rtm ent of Revenae (https ://d o r.wa.gov) <br />SHB L4O6 - Local state-shared tax for <br />affordable and supportive housing <br />What the bill does <br />Substitute House Bill 1406 [1] allows localjurisdictions (cities and counties)to impose a <br />local state-shared sales and use tax to fund affordable or supportive housing. The <br />consumer does not paythis tax, and the effective sales tax rate remains the same. Instead, <br />this tax is credited against the 6.570 state sales tax. <br />Depending on the population of the localjurisdiction, funds from this tax must be used for <br />the following: <br />. acquisition, rehabilitation or construction of affordable housing <br />. funding the operations and maintenance costs of new units of affordable <br />or supportive housing, or <br />. provide rental assistance to tenants <br />How to impose the tax <br />To impose the tax, the local jurisdiction must adopt both of the following: <br />. a resolution of intentto adopt legislation byJan.28,2020 <br />. legislation to authorize the tax byJuly 28,2020 <br />Local jurisdictions may impose this tax as early as Sept. 1,2019. The tax expires twenty <br />years from the date it was imposed. Local state-shared taxes may take effect no sooner <br />than thirty days after the Department of Revenue (department) receives notice of the <br />change and only on the first day of the month (RCW 82.14.055 (2) [2]). <br />Terms and abbreviations <br />Participating City (PCi) means the city that imposes the tax. <br />Participating County (PCo) means the county that imposes the tax.