Providing local governments tax resources and fund flexibility.

SB 6294 allows Washington counties and cities to impose new real estate excise taxes (up to 0.25% for general capital projects, and up to 0.5% specifically for affordable housing) to fund local infrastructure and housing. Local governments must use the tax revenue exclusively for qualifying projects like roads, parks, airports, and affordable housing developments, with specific requirements for documenting housing funds and prioritizing homelessness-related facilities. The bill creates a dedicated affordable housing account for competitive grants to nonprofits and public housing programs, while ensuring funds for existing pre-2019 homeless housing projects remain protected. It applies directly to local governments seeking new revenue streams and to housing providers receiving grants under the new system.