Three city-related finance bills are scheduled for committee hearings this week, covering local financing options, park funding options, and tax exemptions for government-administered financial assistance programs.
HB 1025, sponsored by Rep. Emily Wicks (D–Everett), authorizes cities, counties, and metropolitan park districts to impose a sales and
use tax to acquire, construct, improve, or maintain local parks. The tax must be voter approved, and cannot be greater than 0.01%. The additional funding tools will help local parks address maintenance backlogs and preserve quality open spaces, amidst
an unprecedented decline in earned revenue.
HB 1095, sponsored by Rep. Amy Walen (D–Kirkland), provides a state business and occupation tax, public utilities tax, and retail sales
tax exemption for qualifying grants received after February 29, 2020, and related to the COVID-19 pandemic. Municipal governments are not required to provide a local business and occupation tax credit for qualifying grants.
Qualifying grants may be received directly from a local, tribal, state, or federal government, or indirectly through a third party authorized by the government to distribute the funds.
Finally, SB 5106, sponsored by Sen. Marko Liias (D–Lynnwood), authorizes cities to have access to credit union financing
options. Currently, cities within a county of fewer than 300,000 residents may partner with credit unions to hold more than the federally insured amount of $250,000. However, cities in the state’s five largest counties are prohibited from working
with local credit unions—barring small, medium, and large cities from basic services like operational accounts, short-term investments, and innovative community-focused programs that expand financial relief for residents.
Dates to remember
HB 1025 is scheduled for public hearing in the House Finance Committee on January 21 at 8 am.
HB 1095 is scheduled for executive session in the House Finance Committee on January 19 at 1:30 pm.
SB 5106 is scheduled for public hearing in the Senate Business, Financial Services and Trade Committee on January 21 at 8 am.