Community Preservation and Development Authorities.

Community Preservation and Development Authorities restore or enhance the health, safety, and economic wellbeing of communities adversely impacted by the construction of, or ongoing operation of, major public facilities, public works, and capital projects.  The formation of a Community Preservation and Development Authority (CPDA) must be authorized by statute.  The two CPDAs are the Pioneer Square-International District CPDA and the Central District CPDA, both in the City of Seattle.

A CPDA is required to have one or more of the following purposes:

• to revitalize, enhance, and preserve the unique character of impacted communities;
• to mitigate the adverse effects of multiple major public facilities projects, public works projects, or capital projects with significant public funding, a secure community transition facility, or other land use decisions;
• to restore a local area's sense of community;
• to reduce the displacement of community members and businesses;
• to stimulate the community's economic vitality;
• to enhance public service provisions;
• to improve the standard of living of community members; or
• to preserve historic buildings or areas by returning them to economically productive uses that are compatible with or enhance their historic character.

Among other duties, a CPDA is required to develop a strategic preservation and development plan to restore and promote the health, safety, and economic well-being of the impacted community and to restore and preserve its cultural and historical identity.  The strategic plan must include a prioritized list of projects.  A CPDA is required to establish funding mechanisms to support projects and programs identified and supported in its strategic plan such as grants and loans.  Each CPDA is required to report to the Legislature every biennium on its strategic plan, activities, accomplishments, and recommendations for statutory changes.

The CPDA Account in the state treasury has two subaccounts.  The first is for operating purposes, and the second is for capital purposes.  Operating purposes are administrative and service functions, while capital purposes include acquisition, construction, or improvement of fixed assets such as land and buildings.

Sales and Use Tax.

Retail sales taxes are imposed on retail sales of most articles of tangible personal property, digital products, and some services.  A retail sale is a sale to the final consumer or end user.  If retail sales taxes are not collected when the user acquires the property, digital products, or services, then use taxes apply.  The state, most cities, and all counties levy retail sales and use taxes.

Beginning January 1, 2026, 30 percent of the estimated retail sales tax revenue from qualified facilities must be deposited into the CPDA Account no later than three months after the end of the calendar quarter in which the taxes were collected.  Beginning January 1, 2027, 30 percent of the revenue of the retail sales tax must be deposited equally in the CPDA Account's operating and capital subaccounts no later than three months after the end of the calendar quarter in which the taxes were collected.  A "qualified facility" is a stadium located in a county with a CPDA that has either 68,000 seats with an event space, or 47,000 seats and a retractable roof.

The same process for retail sales applies to the state's use tax.

The Joint Legislative Audit and Review Committee (JLARC) is required to review the funding for the CPDAs by December 1, 2034.  The act expires on January 1, 2037.  If the JLARC review makes certain findings, the expiration date may be extended.  Those findings include:

• assistance with struggling small businesses and repairing unreinforced masonry;
• enhancing community livability by addressing litter and debris and homelessness remediation; and
• addressing housing needs and street outreach.

Beginning November 1, 2027, each CPDA is required to submit biennial reports to the Legislature on its strategic plan, use of funding, and impacts on the community.