Budget & Taxes (Revenue)

HB 2733 limits how municipalities and public facilities districts can spend lodging tax revenues on tourism facilities, capping operational support at 5% of annual lodging tax revenue. It requires applicants to demonstrate how funds will increase tourism by showing projected travel patterns (e.g., overnight stays away from home or trips over 50 miles). Municipalities must use a local advisory committee to review applications and approve funding based on these projections, and recipients must report actual tourism impacts annually. The bill also mandates public reporting of these results to local governments and the legislature.

HB 1334 modifies Washington State's rules for limiting annual growth in local property tax revenue, directly affecting cities, counties, and other taxing districts. The bill replaces the previous inflation measure with the Western Region Consumer Price Index and sets the growth limit at 100% plus population change and inflation (capped at 103%), while small districts (under 10,000 population) remain limited to 101%. It repeals a prior provision allowing some districts to use a 101% limit factor and requires new calculations for tax limits starting in 2026. These changes aim to adjust how property tax revenue growth is calculated for local government funding.

HB 2055 establishes a yearly limit on Washington state revenue growth, calculated using inflation and population changes, to prevent budget expansions without new funding. It requires the state revenue limit committee to adjust this cap annually based on actual collections and economic data, and lowers the limit if state programs shift funding away from the general fund. The bill mandates that any revenue exceeding this limit - after accounting for constitutional transfers - must be deposited into the budget stabilization account by June 30 each year. This directly affects state budgeting processes and the management of the stabilization fund, which holds reserves for economic downturns.

SB 5264 modifies tax compacts between Washington State and federally recognized tribes by increasing revenue-sharing percentages for tribes that complete qualified capital investments. It directly affects tribes with existing compacts, requiring the state to pay them 100% of state sales/use tax revenue above a $500,000 annual cap (instead of 25%) on transactions not meeting "new development" requirements, starting in the fourth year after the compact's effective date. The bill also establishes processes for verifying capital investments, resolving disputes, and maintaining confidentiality of tax records. This change aims to incentivize tribal infrastructure projects while clarifying revenue distribution terms under current compacts.

HJR 4206 proposes amending Washington's Constitution to require a two-thirds majority vote in both the House and Senate to raise taxes. It defines "raises taxes" broadly as any legislative action increasing state tax revenue deposited into any fund or account, regardless of where the funds go. The amendment would prevent tax increases from passing with a simple majority, requiring broader legislative consensus. It also maintains the existing process allowing tax increases to be referred to voters via referendum. This bill directly affects how the legislature passes tax-related measures.