House passes bill to replace property tax with excise for large renewable projects, HB 1960

The Washington House passed Engrossed Third Substitute House Bill 1960, a measure intended to change taxation for large wind and solar projects by replacing personal property tax treatment with an excise tax designed to provide steady contributions to host communities and avoid unintended local tax shifts. The House adopted amendments and advanced the bill for final passage; the clerk recorded 74 yeas, 15 nays and 9 excused.

Representative Rommel, who spoke in favor, said communities that host wind, solar and battery storage systems should receive lasting economic benefit and that the excise tax is intended to maintain stable contributions over time rather than allow depreciation-related shifts onto homeowners and small businesses. "The excise tax will be allocated to the other local governments in the district in the same pro rata formula as the underlying property tax," Rommel said, while acknowledging negotiations on exact rates were ongoing.

Representative Orcutt supported the bill but noted the complexity of property-tax systems and that the change would not retroactively make up prior shifts; she said she had withdrawn an amendment in the spirit of cooperation and will continue to work with counties to seek additional relief where possible.

Representative Dye highlighted the experience of Columbia County, which hosts large wind development and has seen tax-shift concerns, urging that community benefits accrue to hosting communities and that school funding and other local services be protected.

The clerk announced final passage after the recorded vote. The bill includes an effective date read on the floor and will now proceed to the next stage of the legislative process.