HB 1805
In CommitteeHouse
Children services/local tax
Creating a local sales and use tax to fund services for children and families that enhance well-being, promote mental health, and provide early interventions.
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 authorizes Washington counties to impose a small local sales tax—up to 0.01%—to fund services that support children and families, with a focus on mental health, early intervention, and crisis prevention. The goal is to fill gaps in current funding and provide more accessible, community-based support.
- Allows counties to impose a local sales and use tax of up to 0.01% to fund services for children and families.
- Tax revenue must be used exclusively for services that support children and families, including child care, maternity support, school-based mental/physical health services, workforce capacity building, shelter, rental assistance, and client transportation.
- Requires counties to adopt the tax via formal resolution or ordinance before collection can begin.
- Explicitly states that the tax is in addition to existing state and local taxes and follows standard state sales/use tax collection rules.
Who is affected
- Residents of participating counties — Residents of counties that choose to adopt the tax will pay a small additional sales or use tax (up to 0.01%) on purchases, but may benefit from expanded local services for children and families.
- County governments — Can apply to implement the tax via county resolution or ordinance; if approved, they will collect and administer the tax and allocate funds to approved child/family services.
- Local service providers (e.g., community nonprofits, schools, health clinics) — May receive funding to expand or create services like mental health therapy, crisis stabilization, early intervention, and culturally responsive care for children and families.
- Children and families in need of support — Children and their families—especially those facing mental health challenges, poverty, or housing instability—could gain access to earlier, more comprehensive support.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Expands access to school-based mental health and crisis intervention services—particularly for children and adolescents—reducing barriers to early treatment and potentially decreasing long-term psychiatric hospitalizations and ER visits.
HealthcarePeopleRef: Sec. 2(2)Funds school-based mental, social, and physical health services, enabling schools to hire counselors, nurses, and trauma-informed staff—especially critical in under-resourced districts where such services are currently lacking.
EducationPeopleRef: Sec. 2(2)Provides dedicated local funding for rental assistance and shelter, directly supporting low-income families facing housing instability—though scale depends on county adoption and baseline tax base.
HousingPeopleRef: Sec. 2(2)Workforce capacity building funded through the tax may improve child care access and parental employment stability—especially for low-wage workers, by enabling reliable child care arrangements.
Business & EmploymentPeopleRef: Sec. 2(2)Early intervention and crisis prevention services (e.g., school-based mental health, trauma support) can reduce youth involvement in the juvenile justice system and lower rates of self-harm and violence—offering upstream public safety benefits.
Public SafetyPeopleRef: Sec. 2(2)
Potential Concerns (5)
Residents of participating counties pay an additional 0.01% sales tax on all taxable purchases, which disproportionately affects low- and middle-income households who spend a larger share of income on consumption.
FinancialRef: Sec. 2(1)Counties must absorb administrative costs for tax collection, reporting, and oversight—costs that may strain smaller or fiscally constrained counties, especially since no state funding is provided for implementation.
Local GovernmentRef: Sec. 2(2)Businesses (especially small retailers) must comply with additional tax collection and remittance requirements, increasing compliance burden and potential errors, though the 0.01% rate minimizes revenue impact.
Business & EmploymentRef: Sec. 2(2)While rental assistance is explicitly funded, the 0.01% tax generates limited revenue—estimated at $5–15 million *per county* at most—making it unlikely to meaningfully address systemic housing affordability without significant local matching or supplemental funding.
HousingPeopleRef: Sec. 2(2)The bill frames services as preventing youth violence and suicide, but the tax is too narrow in rate and scope to produce measurable public safety improvements without robust program design and evaluation—making this outcome speculative without additional investment.
Public SafetyRef: Sec. 2(2)
Who Is Most Affected
Low- and middle-income families in participating counties benefit most: they pay a small consumption tax but gain access to critical services like mental health counseling, child care, and housing support that directly improve child outcomes and family stability.
Children and adolescents—especially those with untreated mental health conditions, trauma, or risk factors for suicide or delinquency—gain earlier, more accessible care, potentially altering long-term life trajectories.
Small and medium-sized counties (e.g., rural or suburban) may benefit most from flexible, locally tailored funding, but face disproportionate administrative strain relative to tax revenue generated; larger urban counties have more capacity but may see higher net fiscal cost per capita.
Community-based nonprofits and school districts can expand services without relying solely on state grants or Medicaid reimbursement, enabling culturally responsive, localized programming—but must navigate new reporting and accountability requirements.
Retailers and other sales tax collectors must comply with an additional local tax layer, but the 0.01% rate and standardized collection minimize operational burden; no significant revenue loss or gain for businesses.