Transportation

HB 2442 allows Washington counties and cities to impose specific real estate excise taxes to fund local capital projects and affordable housing. It authorizes a 0.25% tax on real property sales for general capital projects (like streets, parks, and sewer systems), with strict usage rules requiring projects to align with comprehensive plans. Additionally, it creates a separate 0.5% tax exclusively for affordable housing development, including acquisition, construction, and maintenance for low- and moderate-income residents. Local governments must document funding plans for future projects and follow voter approval processes for new taxes, while funds must be managed through competitive grant processes for housing initiatives. The bill directly affects local governments by expanding their tax tools for infrastructure and housing priorities.

Senate Bill 5802 rebalances how state funds are transferred to support transportation and public works projects. The bill amends existing laws to modify the amounts and durations of transfers from the state's general fund and the public works assistance account. Specifically, it adjusts financial contributions to the connecting Washington account, the move ahead WA flexible account, and the Tacoma Narrows toll bridge account. These changes generally reduce or shorten the periods for these transfers, directly affecting the financial allocations for various state transportation initiatives.

House Bill 2077 establishes a new tax on certain vehicle manufacturers. This tax applies to profits generated from surplus zero-emission vehicle (ZEV) credits, which are earned when a manufacturer exceeds the state's ZEV sales requirements. The bill requires the Department of Ecology to share manufacturers' ZEV credit activity with the Department of Revenue, and manufacturers must report the prices of ZEV credit transactions. The collected tax revenue is intended to be reinvested into programs that further promote cleaner vehicles.