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Bill would allow mental-health sales tax revenue to fund new construction of treatment facilities
Summary
Senate Bill 5696 would permit revenue from the local mental-health and chemical-dependency sales-and-use tax to be used for new construction of facilities that provide treatment and related services. County and local officials testified in support, saying the change will clarify existing practice and unlock projects in their communities.
House Finance reviewed Senate Bill 5696 on March 18. The bill clarifies permissible uses of revenue from the local mental-health and chemical-dependency sales-and-use tax by explicitly allowing funds to be used for new construction of facilities necessary to provide, operate or deliver treatment programs and services.
Committee staff explained the existing local-option tax: counties and certain cities may impose a mental-health and chemical-dependency sales-and-use tax of up to 0.1% by councilmanic action, with revenue restricted to mental-health and chemical-dependency program and service expenses. Christina King, staff to the committee, said SB 5696 would add new construction to the list of allowable uses so revenues could be used to build new facilities addressing health and safety needs necessary for program delivery.
Senator (last name) King, prime sponsor, said a nonprofit in Yakima approached her seeking to build a new facility but was told existing statutory language was unclear. Yakima County Commissioner LaDon Linde and Clark County policy staff Jordan Bogey testified in support; Commissioner Linde described a 2019 councilmanic 0.1% mental-health sales tax in Yakima and said, "We have found in my experience... that many times it is just as, it sometimes can be less expensive to build a new building than to actually remodel or repair an old or existing building. So we think this actually is a cost effective alternative to allow us to be able to use a new construction..." Bogey described Clark County's interest in capital support for service providers and a possible shelter partnership for people experiencing homelessness.
Staff said a fiscal note is available and that the change would not impact state revenues; any local revenue effects depend on county action. The committee heard supportive local-government testimony and closed the hearing; the transcript shows no committee action or vote during the recorded session.
