SB 5564 is an AWC priority bill that allows local governments to compete for state sales tax credits to finance public infrastructure improvements that spur private investments. Last week AWC President and Kennewick Mayor Don Britain, Fife City Manager Hyun Kim, and Kenmore City Manager Rob Karlinsey, provided compelling testimony in favor of SB 5564 in the Senate Financial Institutions, Economic Development & Trade Committee.

Through a competitive grant process, SB 5564 would allow cities to create development areas where annual increases in revenues from local sales and use taxes and local property taxes would be measured. These increases in revenues and any additional funds from other local public sources would then be used to pay for public improvements in the development area and used to match a state contribution. State funding for the program is provided through a credit against the state sales tax. The state sales tax credit is then used to finance public improvements that encourage job creation and private development. Local government award recipients can receive up to:

• $1 million per year for 20 years;
• $800,000 per year for 25 years; or
• $665,000 per year for 30 years.

AWC wants to hear from you!

Please complete a short 4-question survey regarding your city’s interest in SB 5564. For more information on SB 5564, please visit AWC’s legislative priority webpage. An archived video of the public hearing is available for viewing on the TVW website. We encourage cities to contact your Senators and ask them to support this proposal.