Published on Feb 11, 2022

Extension of county authority for local rural economic development sales tax credit

Contact: Candice Bock, Sheila Gall

HB 1333 sponsored by Rep. Steve Tharinger (D–Port Townsend) would extend authority for the rural county sales tax for public facilities and economic development (referred to as the 0.09 sales tax) until 2054. For counties that imposed the tax prior to August 1, 2009, the sales tax authority is currently limited to 25 years after imposition by the county. The bill passed the House on January 14 and was heard in the Senate Housing & Local Government Committee on February 1.

A rural county is defined as a county with a population density of fewer than 100 people per square mile or a county smaller than 225 square miles. Counties that imposed the tax prior to August 1, 2009, but now exceed the population limits will continue to be eligible to collect the tax.

AWC supports the extension of the tax expiration date. Counties regularly partner with cities to use the funds for local economic development projects.

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