The aim of SB 6027 was to add eligible uses to the existing 0.1% local option sales tax for housing and services. In addition to those added by the Senate (see below), the House added one more before passing the bill: rental assistance.

The language adopted by the House includes rental assistance as an allowable use of funds for 40% of revenues collected from the local sales and use tax for housing and related services. SB 6027 has not officially passed the Legislature until agreement is reached on the change to the bill by the Senate.

Proposal flexing uses of dedicated housing revenues passes the Senate

February 20, 2026

SB 6027 from Sen. Emily Alvarado (D–Seattle) was introduced in recognition that funding shortfalls at the state and changes in federal policy could destabilize funding for certain housing-related programs and services. The bill seeks to provide cities and counties with additional flexibility in the use of dedicated housing revenue streams.

For the 0.1% local option sales tax for housing and services, the following authority is added:

• Cities and counties may use funds to rehabilitate existing affordable housing.
• Cities and counties may use funds to support operating costs of affordable and supportive housing.
• Funds may be pooled through an interlocal agreement between jurisdictions.
• Snohomish County may use funds for rental assistance.

For the 1406 sales tax credit program, SB 6027 grants authority to support operating costs of existing units of affordable housing—previously, it was restricted to supporting new units.

The bill also changes eligible uses of document recording fee revenues that primarily flow through counties. If your city has opted to receive these funds, authority is expanded to support resident services, resident basic daily needs like hygiene products, maintenance and upkeep of facilities, and case management.

Date to remember

SB 6027 is scheduled for public hearing in the House Finance Committee on Thursday, February 26, at 8 am.