Establishing funding for community preservation and development authorities approved through RCW 43.167.060.

Stadium taxes fund affected communities

Washington directs tax money to community preservation and development authorities serving communities harmed by major public facilities and construction projects. Beginning January 1, 2026, 30% of estimated state sales tax revenue from retail sales at qualifying facilities goes to their account. The law also applies these funding rules to state use taxes. A facility must be in a county with an authority and meet one of two size tests. It must have an open-air stadium with at least 68,000 fixed seats and at least 300,000 square feet of related event space. Or it must have at least 47,000 seats for its main use and a retractable roof. Deposits are due quarterly, within three months after the quarter when taxes were collected ends. Beginning January 1, 2027, deposits use actual revenue and split equally between operating and capital accounts. The funding aims to improve community health, safety, and economic well-being; it does not create direct household payments. Authorities must report their plans, spending, and community impacts to legislative committees by November 1 of each odd-numbered year. The law calls for a legislative audit review and a report by December 1, 2034, using state data as needed. Review goals include helping struggling small businesses, repairing unreinforced masonry buildings so businesses can stay, improving safety, and reusing vacant or underused properties. They also include litter cleanup, work addressing homelessness, new low-income and workforce housing, and local street outreach to unhoused residents. The legislature states its intent to extend funding if the review finds these goals are met; an extension is not automatic. The act takes effect immediately, but tax deposits begin on the dates above, and the act expires January 1, 2037.