OLYMPIA — The Washington State Senate passed House Bill 2442, a measure designed to give cities and counties greater flexibility in how they use local tax revenues to support critical community needs, including housing, childcare, public health, and behavioral health services.
The bill expands how certain local taxes can be used and creates new optional tools that local governments may adopt to address pressing challenges facing communities across Washington.
“Local governments are on the front lines of meeting community needs, but too often they are constrained by outdated rules about how revenues can be used,” said Rep. April Berg (D-Mill Creek), the bill’s prime sponsor. “This legislation gives cities and counties practical tools and flexibility to invest in what their communities need most, from affordable housing and childcare to public health and mental health services.”
The bill allows local governments to use existing real estate excise tax (REET) revenues more flexibly, including for nuisance property abatement. It also expands the allowable uses of local housing-related sales tax revenues so that funds can support the rehabilitation, operations, and maintenance of existing affordable housing, not just the construction of new units.
Beginning in 2027, the bill also authorizes counties and cities to adopt a small 0.01 percent local sales tax dedicated to services for children and families, including childcare, perinatal support, after-school programs, workforce development, rental assistance, and transportation for families accessing services.
The bill also updates rules related to the creation and governance of fire protection districts, improving transparency, stakeholder consultation, and local flexibility while maintaining accountability to voters.
Supporters say the measure reflects the growing financial pressures facing local governments and provides tools to respond to community priorities.
“This bill is about empowering communities,” Berg said. “Whether it’s stabilizing affordable housing, supporting public health clinics, or investing in services that help children and families thrive, local leaders will have more ability to respond to the real challenges their residents face.”
The bill passed the Legislature this week and now heads to the Governor’s desk for consideration.