SB 5460
In CommitteeSenate
Community authority funding
Establishing funding for community preservation and development authorities approved through RCW 43.167.060.
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 directs that 30% of state sales and use tax revenue from retail sales at large stadiums (e.g., Seahawks or Mariners venues) be deposited into a dedicated fund for Community Preservation and Development Authorities (CPDAs) in qualifying counties, starting in 2026. The money supports economic, housing, safety, and environmental improvements in communities near these facilities, with a legislative review scheduled for 2034 to decide whether to extend the program beyond its 2037 expiration.
- Starting January 1, 2026, 30% of state sales and use tax revenue from retail sales at qualified facilities (e.g., large stadiums) must be deposited into the Community Preservation and Development Authority Account.
- Revenue deposits are split equally between the operating and capital subaccounts of the CPDA fund, and deposits are made semiannually (by June 30 and December 31) based on tax collections from the prior six months.
- A "qualified facility" must be in a county with an active CPDA and meet strict criteria: either an open-air stadium with 68,000+ fixed seats and 300,000+ sq ft event space, or a roofed facility with 47,000+ seats and a retractable roof.
- The Joint Legislative Audit and Review Committee (JLARC) must review CPDA funding and impacts by December 1, 2034, and report findings to the legislature—this review will inform whether funding should be extended.
- CPDAs must submit biennial reports (by November 1 of odd-numbered years) to the legislature detailing their strategic plans, funding use, and community impacts.
- The law expires on January 1, 2037, unless extended by the legislature based on JLARC’s review.
Who is affected
- Community Preservation and Development Authorities (CPDAs) in qualifying counties — Communities near large sports facilities (e.g., stadiums with 68,000+ seats or 47,000+ seats with a retractable roof) that host major events and may face disruptions from traffic, noise, or environmental impacts; these communities may receive funding to address economic, safety, and housing challenges.
- Small businesses in affected communities — Small businesses in areas near qualifying facilities may benefit from CPDA support for repairs (like unreinforced masonry), business assistance, and retention in their locations.
- Low-income and unhoused residents — Low-income and workforce housing developers and residents may benefit from new housing units and outreach services for unhoused individuals funded through CPDAs.
- State agencies (Department of Revenue, State Treasury) — The state government (especially the Department of Revenue and State Treasury) will be responsible for calculating, reporting, and transferring sales tax revenue to CPDA accounts on a semiannual basis.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Dedicated, ongoing funding for low-income and workforce housing through CPDAs could significantly increase supply in high-pressure markets near stadiums—where displacement pressure is highest—potentially stabilizing vulnerable communities if implemented with strong affordability safeguards.
HousingPeopleRef: Sec. 1(1); Sec. 3(2)(c)Funding to address litter, debris, and homelessness impacts directly targets public health and safety concerns that disproportionately affect unhoused individuals and residents in neighborhoods near high-traffic venues—potentially improving quality of life and reducing emergency service strain.
Public SafetyPeopleRef: Sec. 3(2)(b)Mandated support for small business repair (e.g., unreinforced masonry) and retention could prevent displacement of long-standing local businesses in gentrifying zones near stadiums—helping preserve economic diversity and local jobs where commercial rents are rising.
Business & EmploymentPeopleRef: Sec. 3(2)(a)The biennial reporting and JLARC review requirement creates accountability and transparency, allowing for data-driven adjustments and ensuring community input—reducing risk of mismanagement or mission drift in CPDA spending.
Local GovernmentLean peopleRef: Sec. 3(1); Sec. 4Funding for environmental improvements (e.g., stormwater, green space, pollution remediation) near high-traffic venues could mitigate localized environmental burdens—particularly in historically overburdened neighborhoods—aligning with state climate goals.
EnvironmentPeopleRef: Sec. 1(1); Sec. 3(1)
Potential Concerns (5)
The bill redirects 30% of sales tax revenue from large stadiums to CPDAs, reducing general fund revenue available to counties and cities not hosting qualified facilities—potentially straining local budgets in non-qualifying jurisdictions that still experience spillover effects (e.g., traffic, emergency response, sanitation) without corresponding tax revenue.
Local GovernmentRef: Sec. 1(1)While small businesses in qualifying areas may benefit, the bill does not mandate how CPDA funds must be allocated among business support, housing, or safety—leaving discretion to local CPDAs, which may prioritize capital projects over direct small business aid, depending on political pressures or capacity.
Business & EmploymentRef: Sec. 1(1)The bill authorizes funding for low-income and workforce housing, but does not require affordability covenants or tenant protections beyond the CPDA’s discretion—raising risk that new units may be market-rate or short-term, limiting long-term benefit for low-income residents.
HousingLean peopleRef: Sec. 3(2)(c)The automatic expiration in 2037 creates uncertainty for long-term community planning; CPDAs may delay or avoid investments requiring multi-year commitments due to fear of funding cliffs, reducing program effectiveness.
Local GovernmentRef: Sec. 5 (sunset 2037)The strict facility criteria (e.g., 68,000+ open-air seats or 47,000+ with retractable roof) exclude many mid-sized venues and limit eligibility to only King and possibly Snohomish counties—meaning most Washington communities, even those near professional sports facilities, receive no benefit despite similar impacts.
Business & EmploymentRef: Sec. 1(3)(a)-(b)
Who Is Most Affected
Low-income and unhoused residents in qualifying counties may gain access to new housing units, outreach services, and neighborhood cleanup efforts—though benefits depend on whether CPDAs prioritize deep affordability and tenant protections.
Small businesses in stadium-adjacent neighborhoods may benefit from repair grants and retention support, but only if CPDAs allocate funds to small business programs rather than larger capital projects—making outcomes highly dependent on local governance capacity and priorities.
CPDAs gain a new, dedicated revenue stream, expanding their capacity to implement community development projects—but they also face new reporting requirements and accountability to the legislature, increasing administrative burden.
Counties and cities outside the two most likely qualifying counties (King and Snohomish) may see increased demand for services (e.g., law enforcement, sanitation) from stadium visitors without receiving tax revenue—potentially straining local budgets and equity efforts.
The state Department of Revenue and Treasury face new administrative duties (calculation, notification, transfer) but no significant cost increase—impact is neutral in fiscal terms but adds operational complexity.