AN ACT Relating to creating a local sales and use tax; adding a new section to chapter 82.14 RCW; creating a new section; and providing an effective date.

NEW SECTION. Sec. 1. (1) The legislature finds that cities and counties across Washington state are experiencing significant financial challenges, driven by rising costs for essential services such as public safety, infrastructure maintenance, and social services. These pressures have made it increasingly difficult for local governments to meet the needs of their communities effectively.

(2) The legislature further finds that inflation and rising costs are placing additional financial strain on consumers. Families across the state are grappling with tighter budgets, making it more critical than ever to implement policies that avoid placing additional financial burdens on individuals and households.

(3) Therefore, it is the intent of the legislature to authorize a city and county option sales and use tax that is credited against the state rate. This policy ensures that local governments can secure the resources necessary to meet critical infrastructure and service demands without increasing the overall tax burden on consumers, thereby supporting both fiscal responsibility and economic stability.

NEW SECTION. Sec. 2. A new section is added to chapter 82.14 RCW to read as follows:

(1) The legislative authority of any county or city, may, by resolution or ordinance, impose a sales and use tax in accordance with the terms of this section. The tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the city or county.

(2) The rate of tax under this section is equal to 0.5 percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.

(3) The combined total tax levied under this section may not be greater than 0.5 percent. If both a county and a city impose a tax under this section, the tax imposed by a city must be credited against the tax imposed by a county.

(4) The tax authorized under this section must be deducted from the amount of tax otherwise required to be collected or paid to the department under chapter 82.08 or 82.12 RCW. The department must perform the collection of taxes on behalf of the city or county at no cost to the city or county.