Providing state funding for essential affordable housing programs.

Changed the tax from a mandatory state collection to a voluntary local option that counties, cities, and towns must explicitly adopt.

Reduced the maximum tax rate from six percent to four percent and lowered the administrative retention cap from 20 percent to 15 percent.

Expanded eligible uses of tax revenue to include acquiring, rehabilitating, or constructing affordable and workforce housing, not just existing programs.

Removed strict requirements for housing infrastructure projects, such as density limits, impact fee reductions, and single-family size restrictions.

Reorganized the bill structure to add a new section to the existing chapter 82.14 RCW instead of creating a new chapter.

Removed the specific effective date of January 1, 2026, as the tax will only begin when a local government adopts it.