Finds that it is in the interests of the people of the state of Washington to facilitate the annexation of unincorporated areas that lie within designated urban growth areas. This act is intended to permit cities to apply real estate excise tax revenues that would otherwise be restricted to capital purposes to offset the costs associated with such annexations. This authority is intended to work in conjunction with the establishment of an annexation capital facilities district under House Bill No. . . . . (2006).

Authorizes the legislative authority of any city for which an annexation capital facilities district has been established under chapter 35.-- RCW (H-4485/06), to apply all or a portion of the revenues received from the tax imposed under RCW 82.46.010 to the costs of annexation identified in an annexation cost study completed under RCW 82.46.010(1). The total amount of revenues applied to annexation costs shall not exceed the amount dedicated to capital purposes by the annexation facilities district under chapter 35.-- RCW (H-4485/06).

Declares that this act takes effect July 1, 2006, only if chapter . . . (House Bill No. . . . . (H-4485/06)), Laws of 2006 is signed by the governor. If chapter . . . (House Bill No. . . . . (H-4485/06)), Laws of 2006 is not signed by the governor by July 1, 2006, this act is null and void.