HB 1148
In CommitteeHouse
Youth athletics/sales tax
Exempting goods and services provided by youth athletic facilities from sales and use tax.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill removes sales and use taxes on goods and services provided by nonprofit youth athletic facilities, aiming to make youth sports more affordable and accessible while supporting local economies through increased sports tourism. The exemption begins on January 1, 2026, and applies only to facilities operated by 501(c)(3) nonprofits.
- Exempts sales of goods and services by youth athletic facilities from the state sales tax starting January 1, 2026.
- Exempts use of goods and services purchased from youth athletic facilities from the state use tax starting January 1, 2026.
- Defines a 'youth athletic facility' as an indoor or outdoor facility (or portion) primarily used for competitive sports for people under age 18, operated by a nonprofit with 501(c)(3) federal tax-exempt status.
- Clarifies that the exemption applies only to facilities run by qualifying nonprofits—not for-profit sports organizations or general recreation centers.
- States the legislature's intent to support youth sports access, healthy lifestyles, and local economies through the tax exemption.
Who is affected
- Nonprofit youth athletic organizations — Nonprofit organizations operating youth athletic facilities will no longer collect or remit sales tax on goods and services they provide, reducing administrative burden and potentially lowering costs for programs.
- Families of youth athletes — Families and guardians of children under 18 who participate in youth sports may see lower costs for facility use, equipment, and services, especially in underserved communities where affordability is a barrier.
- Local businesses in host communities — Local businesses such as hotels, restaurants, and retail stores may benefit from increased visitor spending tied to tournaments and events hosted at tax-exempt youth athletic facilities.
- Washington State Department of Revenue — The Washington State Department of Revenue will no longer collect sales or use tax revenue from transactions involving youth athletic facilities, requiring updates to tax reporting and enforcement systems.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Families of youth athletes—especially those earning under $50,000/year—will directly benefit from lower costs for facility rentals, equipment, uniforms, and concessions, reducing a recurring household expense tied to youth sports participation.
FinancialPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)By reducing operational costs for school-affiliated or community-based youth athletic programs (many of which are run by 501(c)(3) nonprofits), the exemption may help sustain or expand after-school and summer sports programming, supporting physical health and social-emotional learning aligned with school goals.
EducationPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)Lower participation barriers may increase youth physical activity, contributing to long-term public health gains—though the direct health impact from this single policy is likely modest without complementary investments in access and equity.
HealthcarePeopleRef: Sec. 2 & Sec. 3 (exemption provisions)Local governments may benefit from increased tourism and event hosting, which can generate non-tax revenue (e.g., permit fees, parking, vendor contracts) and strengthen community cohesion—though this depends on local capacity to attract tournaments.
Local GovernmentPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)Local small businesses—especially in hospitality, food service, and retail—may see increased customer traffic during tournaments and events, supporting part-time and seasonal employment in communities hosting youth sports.
Business & EmploymentPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)
Potential Concerns (5)
The $15 million annual reduction in state sales tax revenue will reduce public funding available for shared services—including schools, roads, and public safety—potentially leading to budget cuts or tax increases elsewhere that disproportionately affect low- and middle-income households.
FinancialPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)Local governments may lose local option sales tax revenue that was previously collected on transactions at youth athletic facilities, especially if those facilities are located in cities or counties with local tax overlays—reducing funds for local infrastructure, parks, or schools.
Local GovernmentLean peopleRef: Sec. 2 & Sec. 3 (exemption provisions)While the bill frames the benefit as supporting local economies, the tax exemption applies only to 501(c)(3) nonprofits, excluding for-profit sports complexes and many commercial youth leagues—limiting the scope of economic benefit and potentially distorting market competition in favor of nonprofit operators.
Business & EmploymentRef: Sec. 2 & Sec. 3 (exemption provisions)The bill does not address affordability barriers for families in high-cost housing areas, where youth sports participation is already constrained by housing and transportation costs—so the tax exemption alone is unlikely to meaningfully increase access for the most economically disadvantaged families.
HousingPeopleRef: Sec. 2 & Sec. 3 (exemption provisions)The bill does not include requirements for safety standards, background checks, or insurance coverage at exempt facilities—potentially increasing liability risks for volunteers and local governments hosting events, without adding new oversight.
Public SafetyRef: Sec. 2 & Sec. 3 (exemption provisions)
Who Is Most Affected
Nonprofit youth athletic organizations benefit directly: reduced administrative burden (no sales tax collection), lower operating costs, and potential to expand programs. However, smaller or under-resourced nonprofits may lack capacity to apply for grants or host tournaments, limiting equitable benefit distribution.
Families with children under 18—especially those earning below median income—benefit from lower program fees and equipment costs. However, families in high-cost urban areas or without transportation access may still face barriers, limiting the policy’s equity impact.
Local small businesses (restaurants, hotels, gas stations) near facilities may gain from tournament-related tourism, but only if the facility hosts events. Facilities in remote or low-population areas may see little spillover effect.
The state loses $15M/year in revenue, which could strain general fund budgets and lead to cuts in other public services. This reduction is regressive in effect, as the burden shifts to other taxpayers through service reductions or tax increases elsewhere.
For-profit youth sports operators (e.g., commercial leagues, private clubs) are excluded from the exemption, potentially giving nonprofits a competitive advantage—but this may reduce consumer choice or innovation if for-profits dominate high-demand markets.