Published on Feb 13, 2026
Local option to waive sales tax on materials for affordable housing passes the House
HB 1717 has been on a bit of a fast track this session. It passed the House unanimously with a minor amendment on February 11 and has already been scheduled for a committee hearing in the Senate. Please share your support for this bill with your delegation.
Date to remember
HB 1717 is scheduled for public hearing in the Senate Ways & Means Committee on Thursday, February 19, at 4 pm.
Proposal authorizes cities to waive sales tax on construction materials for affordable housing
January 9, 2026
Coming back for a second round, HB 1717 from Rep. Mari Leavitt (D–University Place) has been scheduled for a hearing the first week of session. The bill stalled in 2025 because it impacted state sales tax revenue. AWC worked with Rep. Leavitt during the interim to bring an amended bill forward that would focus only on authority to waive local sales and use taxes. The bill now authorizes cities to waive local sales tax on construction materials for qualifying affordable housing projects. Project applicants would pay sales tax but qualify for a remittance or reimbursement. At least half of the project’s units must be affordable at 120% of AMI or below for the project to qualify.
We look forward to testifying in support of the bill in committee.
Date to remember
HB 1717 is scheduled for public hearing in the House Finance Committee on Thursday, January 15, at 1:30 pm.
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Affordable housing
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AWC's bill tracker
Visit AWC’s bill tracker to learn about legislation with city impacts this year.