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Committee hears broad package expanding local revenue options and flexibility
Summary
SB 6,294 is an eight‑part bill that would expand allowable uses of REET proceeds, authorize new local utility tax authority, create a small local sales tax option for child/family services, adjust levy‑lift timeframes, and allow rental‑car tax proceeds for criminal-justice uses; supporters cited fiscal strain on counties and need for tools, opponents warned of regressive impacts and housing transaction costs.
Jeff Mitchell, committee staff, briefed substitute Senate Bill 6,294 as an eight-part package aimed at expanding local government revenue tools and flexibility. Highlights described in the briefing included expanding allowable REET (real estate excise tax) uses to permit nuisance-abatement spending; enabling cities to impose an affordable-housing REET option (subject to voter approval); creating a county utility tax (limited to 3%) with a 0.2% set-aside to assist low-income residents; authorizing a 0.01% local sales and use tax to fund services for children and families; broadening allowable uses of housing‑related local sales taxes to include rental assistance and rehabilitation; and changes to levy-lid lift duration and rental-car tax uses.
Supporters included county officials, the Washington State Association of Counties, some city representatives, public-health and human-services advocates, and county treasurers, who emphasized fiscal pressures, cuts to local services and public-safety impacts. Paul Jewell of the Counties Association framed the utility tax as a needed option while acknowledging its regressive nature and highlighting proposals to mitigate effects for low-income households.
Opponents at the hearing included industry and stakeholder groups that urged caution: water and sewer districts argued a county utility tax would force pass-through rate increases to ratepayers; auto dealers asked for voter approval for any new local-option sales taxes; realtors highlighted the effect of additional REET on seller costs and housing affordability; cannabis and other business groups testified on other bill parts.
Mitchell summarized fiscal notes that showed net state costs over multi-year outlooks driven by administrative implementation and transfers; several cities and counties outlined local review costs for ordinance changes.
