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Monroe staff highlight state bills: housing, license-plate reader limits and a new millionaire's tax
Summary
City staff summarized the 2026 Washington legislative session for Monroe, noting preserved funding for State Route 522, HB 2266 requirements for transitional and supportive housing, SB 6002 limits on automated license-plate-reader data retention, and SB 6346 proposals that could change tax revenue flows for local governments.
City legislative staff briefed the Monroe City Council on April 28 about the outcomes of the 2026 Washington Legislature and bills likely to affect local planning and revenues.
Mr. Mccoral said the 60-day session yielded budget changes — he cited an increase in biennial general fund expenditures to about $79.4 billion and transportation appropriations to $16.6 billion — and noted the city successfully preserved roughly $33.7 million for preliminary engineering and right-of-way acquisition for State Route 522. “We were successful in maintaining this request,” he said.
On housing, he summarized House Bill 2266 (the “step housing” bill), saying it restricts some local regulation by requiring cities to allow transitional and permanent supportive housing in zones that permit residential buildings or hotels, and requires adoption of changes by June 10, 2028; the final bill allows limited verification of operating policies and staffing to ensure health and safety. On public-safety tools, he described Senate Bill 6002, which narrows permissible uses of automated license-plate readers to gross misdemeanors and felony investigations and mandates deletion of captured data within 21 days; the city must adopt governing policies and file them with the attorney general by December 1, 2027.
Mr. Mccoral also discussed Senate Bill 6346, which would impose a 9.9% tax on incomes over $1 million and create sales-tax exemptions beginning in 2029; he said the bill expresses an intent to create a fiscal health account for local government but does not directly allocate mitigation funds to localities, and that the city should prepare for potential sales tax revenue reductions in 2029.
He recommended continued interim advocacy, including outreach to legislators from the 12th and 39th districts and coordination with neighboring jurisdictions to pursue joint strategies on transportation and regional priorities.
