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WashingtonSB 53152025-2026 Regular SessionSenateWALLET

Standardizing notification provisions relating to local tax rate changes and shared taxes administered by the department.

Sponsored By: Chris Gildon (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Small cultural center sales tax option

Small regional cultural center districts in counties under 300,000 people can add a small sales and use tax if they meet the law’s date, size, and construction rules. For districts formed under chapter 35.57, the rate is up to 0.025 percent; for those under chapter 36.100, up to 0.020 percent. The Department collects the tax at no cost to the district. The tax ends when project bonds are paid off, and no later than 40 years after first collection; the district must give 75 days’ written notice of the bond payoff. Money can be used only for public facilities district purposes in state law and must be matched with 33 percent from other sources.

Small sales tax for regional centers

Some public facilities districts can add a small local sales and use tax up to 0.033 percent to fund regional centers. The rate can rise to 0.037 percent only if the Department of Revenue finds the district lost at least 0.50 percent of collections within three fiscal years of July 1, 2008 due to state law changes, and only in 0.001 percent steps. The total of these taxes in the same area cannot exceed 0.037 percent, and one district’s tax is credited against another’s. The tax ends when project bonds are paid off, and no later than 40 years after first collection; the district must give 75 days’ written notice of the bond payoff. The Department collects this tax at no cost to the district. Money must be used for public facilities district purposes in state law and matched with 33 percent from other public or private sources. A district formed under chapter 36.100 cannot use this tax if the county already imposed certain sales taxes under state law.

Standard notice for local sales taxes

The law standardizes when local sales and use tax changes start. Most changes start on January 1, April 1, or July 1, and only after at least 75 days’ written notice to the Department of Revenue. For local taxes that work as a credit against the state tax, changes can start with 30 days’ notice on the first day of any month. Local governments must send written notice with the signed ordinance or resolution. For annexations, they must also send the legal description, a boundary map, and parcel numbers. A “local sales and use tax change” includes new taxes, revisions, referendums, and changes from annexations.

New billing rules for service taxes

When local tax rates on services change, businesses follow set billing rules. Increases apply to the first billing period that starts on or after the effective date. Decreases apply to bills dated on or after the effective date. Covered services include installing, construction, and telecommunications; tattooing is not included.

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Sponsors & Cosponsors

Sponsor

  • Chris Gildon

    Republican • Senate

Cosponsors

  • Jesse Salomon

    Democratic • Senate

  • T'wina Nobles

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 146 • No: 0

House vote • 4/16/2025

3rd Reading & Final Passage

Yes: 97 • No: 0 • Other: 1

Senate vote • 2/12/2025

3rd Reading & Final Passage

Yes: 49 • No: 0

Actions Timeline

  1. Effective date 7/27/2025.

    5/12/2025Senate

  2. Chapter 245, 2025 Laws.

    5/12/2025Senate

  3. Governor signed.

    5/12/2025legislature

  4. Delivered to Governor.

    4/23/2025legislature

  5. Speaker signed.

    4/22/2025legislature

  6. President signed.

    4/19/2025legislature

  7. Third reading, passed; yeas, 97; nays, 0; absent, 0; excused, 1.

    4/16/2025Senate

  8. Rules suspended. Placed on Third Reading.

    4/16/2025Senate

  9. Rules Committee relieved of further consideration. Placed on second reading.

    4/10/2025Senate

  10. Referred to Rules 2 Review.

    4/8/2025Senate

  11. FIN - Majority; do pass.

    4/7/2025Senate

  12. FIN - Executive action taken by committee.

    4/7/2025Senate

  13. First reading, referred to Finance.

    2/17/2025Senate

  14. Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.

    2/12/2025Senate

  15. Rules suspended. Placed on Third Reading.

    2/12/2025Senate

  16. Placed on second reading consent calendar.

    2/5/2025Senate

  17. Passed to Rules Committee for second reading.

    1/31/2025Senate

  18. LGV - Majority; do pass.

    1/30/2025Senate

  19. First reading, referred to Local Government.

    1/16/2025Senate

  20. Introduced

    1/16/2025Senate

Bill Text

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