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Panel hears testimony on HB 1408 to create sustained sales-tax funding for community preservation authorities
Summary
Lawmakers heard testimony on House Bill 1408, which would direct a portion of sales-and-use tax from specified stadiums to two Community Preservation and Development Authorities (CPDAs) and require JLARC review and biennial reporting by the CPDAs.
State Representative Sharon Tomiko Santos, sponsor of House Bill 1408, told the Technology, Economic Development and Veterans Committee that the bill would create a dedicated funding source for community preservation and development authorities, citing the Seattle Chinatown-International District and Pioneer Square as examples of neighborhoods the measure would serve.
The bill would require the Department of Revenue and the state treasurer to deposit 30% of sales-and-use tax on retail sales at qualified facilities into a new CPDA state account beginning Jan. 1, 2026. Deposits would be split equally between two subaccounts for operating and capital purposes. The bill sets a statutory expiration date of Jan. 1, 2037, but allows extension depending on a JLARC review due Dec. 1, 2034.
Why it matters: Proponents said the funding is intended to help small businesses, preserve historic buildings, address unreinforced masonry, and support public-safety efforts in neighborhoods affected by large public projects and stadium traffic. Opponents were not recorded during the hearing; the item was taken as a committee hearing rather than a vote.
What supporters said: Representative Sharon Tomiko Santos said the CPDA model was created to support ‘‘ethnic enclaves in urban centers’’ and noted that the Seattle Chinatown-International District had been named to the National Trust for Historic Preservation’s list of 11 most endangered historic places. Kathleen Barry Johnson, executive director of Historic South Downtown (the Pioneer Square CPDA), said HB 1408 would provide sustainable funding to help small businesses, the creative economy, and efforts to fix unreinforced masonry and improve housing and public safety.
Other supporters included Armando Garzon, owner of Color Studios in Pioneer Square, who urged passage to preserve creative spaces and retain artists; and Christopher Ellis of the Bricklayers and Allied Craft Workers Union, who emphasized job creation through masonry retrofit work.
Key provisions and timing (as described to the committee): JLARC is directed to review CPDA funding by Dec. 1, 2034, with findings on whether funding meets objectives such as repairing unreinforced masonry, addressing litter and debris, and meeting housing needs. CPDAs must submit biennial reports to the Legislature beginning Nov. 1, 2025. The sales-and-use tax direction takes effect Jan. 1, 2026.
What the bill does not do in committee testimony: The hearing included no committee vote on HB 1408 during this meeting. Proponents described the funding mechanics and local impacts but did not present enacted statutory text beyond the staff briefing summary. Staff clarified administrative steps for the Department of Revenue and state treasurer to calculate and deposit the revenue.
Context and next steps: Supporters framed HB 1408 as a long-sought, targeted revenue source for CPDAs created in statute but historically underfunded since 2007. The committee closed the hearing on HB 1408 and moved to other agenda items. Further committee consideration, amendment or a formal vote could occur in later hearings or on the floor.
Ending: Testimony at the hearing emphasized preservation, small-business stabilization and public-safety uses for CPDA funding; supporters asked the committee to recommend passage so CPDAs can build on recent state investments and prepare for large regional events such as the 2026 World Cup.
