Last week, HB 1069, AWC’s fiscal flexibility priority bill, moved out of the House Finance
Committee yet it needs more bipartisan support.
AWC is grateful to the cities that have testified in support of this bill. While we were excited it passed out of the Finance Committee, we were concerned to see the bill lacked any Republican support there. We encourage cities to contact local legislators
in support of the bill’s local flexibility options. Please let them know this bill needs bipartisan support to pass the Legislature.
As we previously reported, HB 1069 was amended as it passed out of the House Local
Government Committee. In addition to the revenue sources included in the original bill, legislators added flexibility to the chemical dependency and mental health treatment services tax and real estate excise tax. The bill was also amended to remove
the original lodging tax flexibility.
The Committee amendments to the bill include:
- Chemical dependency and mental health treatment services tax: revenue may be used for capital projects necessary to the operation or delivery of chemical dependency or mental health treatment programs and services.
- Lodging tax revenue: removes provisions allowing lodging tax revenue to be used for housing and rental assistance through December 31, 2023.
- Real estate excise tax: provides that the greater of $100,000 or 35% of real estate excise tax revenue can be used for the operation of, maintenance of, and service support for existing capital projects through December 31, 2023.
- Property tax levies: allows king County to use levies approved by voters in 2019 to supplant existing funds.