Citizen Commission adopts 2027–2036 tax‑preference review schedule and a rolling 10‑year approach

The Citizen Commission for Performance Measurement of Tax Preferences voted unanimously on May 6, 2026 to approve its draft 2027–2036 tax‑preference review schedule and to adopt a rolling 10‑year schedule that will be updated each May.

Commission members heard a staff presentation from Pete Van Moorsel (JLARC) outlining the approach used to build the schedule: remove expired and statutorily exempt preferences, add newly created preferences, respect legislative mandates on timing, and consider staff capacity. Staff proposed a rolling schedule to improve forward planning and allow the commission and legislature to see an additional year ahead each May.

Staff highlighted items proposed for full review in 2027: a property‑tax exemption for accessory dwelling units rented to low‑income households in King and Pierce counties (statute directs JLARC to evaluate costs, number of applicants, and number of exempt units); a B&O exemption for a county‑owned, university‑managed hospital (to evaluate uncompensated care and Medicaid/Medicare service levels); a preferential use‑tax rate for refinery fuel gas (to evaluate amounts produced at Washington refineries); a second review of a public‑utility tax exemption for electricity sales to electrolytic processing firms (to review employment and tax savings); two real estate excise tax exemptions (sales of manufactured/mobile home communities to tenants and sales of self‑help housing to low‑income households); and a partial sales‑and‑use‑tax exemption (50% of sale price) for hydrogen fuel cell electric vehicles.

Staff also identified alternates that could receive fuller evaluation subject to capacity: a sales‑and‑use tax deferral for construction and renovation of sports arenas and ice‑hockey practice facilities (evaluations of fiscal stability and community economic impact) and a sales‑and‑use tax exemption for sales of abandoned vehicles by tow operators (estimated fiscal impact about $35,000 per year; limited data on use).

Commissioner Jim Orr moved to approve the 2027–2036 schedule; the motion passed by a unanimous roll‑call voice vote as recorded by JLARC staff. The commission then moved to adopt the rolling 10‑year approach; that motion was also approved unanimously.

JLARC staff said preliminary scoping for 2027 review items will begin in June and reminded commissioners that the schedule can be revised as review years approach.