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Evergreen Ledger

SSB 6149

Signed

Senate

Public facilities funding

Concerning the definition of "rural county" for purposes of public facilities funding.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 3, 2026
Last Action: March 14, 2026
Status: C 42 L 26
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill updates how Washington defines rural counties for funding purposes and allows those counties to impose a local sales/use tax to fund public facilities, affordable housing, and economic development. It also tightens reporting requirements and sets expiration rules for the tax.

  • Revises the definition of 'rural county' to include counties with population density under 100 people per square mile, counties under 225 square miles, or counties with no city over 75,000 people.
  • Expands the definition of 'frontier county' and clarifies that frontier counties are automatically considered rural counties eligible for all rural benefits unless specifically excluded.
  • Authorizes rural counties to impose a local sales and use tax up to 0.09% (or 0.04% for certain mid-density counties) to fund public facilities, affordable workforce housing infrastructure, and economic development staff.
  • Requires tax proceeds to be used only for projects listed in the county’s economic development or capital facilities plan, and prohibits use for justice system facilities.
  • Mandates annual reporting by counties to the Office of the State Auditor, including project details and total tax revenue collected, with a publicly accessible report due by December 31, 2024 for 2023 data.
  • Sets a sunset date for the tax: generally 25 years after first imposition, but for counties that imposed it before August 1, 2009, the tax expires on December 31, 2054.

Who is affected

  • Rural county governments — Counties with low population density (under 100 people per square mile), or counties under 225 square miles, or counties with no city over 75,000 people, gain the ability to impose a local sales/use tax for public facilities and economic development.
  • Local municipalities and port districts in rural counties — Cities, towns, and port districts within rural counties gain the right to be consulted on how tax proceeds are spent and may benefit from projects they help plan.
  • Affordable housing providers and developers — Nonprofit housing providers, housing authorities, and public corporations may use tax funds to build or support affordable housing infrastructure for households earning up to 120% of local median income.
  • State agencies (Commerce, OFM, State Auditor) — State agencies like the Department of Commerce, Office of Financial Management, and Office of the State Auditor gain new responsibilities for defining rural areas, publishing population data, and reporting on tax usage.
Effective: July 1, 2025Fiscal impact: The bill allows rural counties to collect up to 0.09% in local sales/use tax (or 0.04% for counties with population density between 60–100 people/sq mi), which must be used for public facilities, affordable housing infrastructure, or economic development staff. The state Department of Revenue will collect the tax at no cost to counties. There is no direct fiscal impact on the state general fund, but increased local revenue may reduce reliance on state funding for certain projects.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 20, 2026 at 2:31 AM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • The bill authorizes rural counties to impose up to 0.09% sales tax to fund affordable workforce housing infrastructure for households earning ≤120% AMI, directly supporting low- and moderate-income residents in areas where housing supply is constrained and market forces have failed to meet demand.

    HousingPeopleRef: RCW 82.14.370(1), (3)(a)(ii)

  • By allowing rural counties to fund public facilities—including roads, water, sewer, and broadband—through local sales tax, the bill improves access to essential infrastructure in underserved areas, enhancing emergency response, public health, and quality of life for residents in remote communities.

    Public SafetyPeopleRef: RCW 82.14.370(3)(a)(i)

  • The revised rural/ frontier county definitions and automatic eligibility for frontier counties ensure more consistent access to state and local funding for the most isolated and economically vulnerable areas, strengthening their capacity to plan and invest in long-term community needs.

    Local GovernmentPeopleRef: RCW 43.160.020(4), (5)

  • Mandated annual reporting to the State Auditor—including detailed project lists and revenue totals—improves transparency and accountability for how rural communities spend local tax dollars, enabling oversight by residents and reducing risk of misuse or misallocation.

    Local GovernmentPeopleRef: RCW 82.14.370(6)

  • Funding for economic development staff in rural counties enables targeted support for small businesses, startups, and workforce training—particularly in sectors like agriculture, tourism, and manufacturing—potentially stabilizing local economies and creating family-wage jobs in areas with high outmigration.

    Business & EmploymentLean peopleRef: RCW 82.14.370(3)(a)(iii)
Potential Concerns (5)

  • The bill expands the definition of 'rural county' to include counties with population density up to 100/sq mi, no city over 75,000, or area under 225 sq mi—potentially including semi-rural or exurban counties near metro areas. This may dilute targeted rural assistance by including areas with stronger tax bases and less need for infrastructure support, reducing the effectiveness of funding for the most isolated communities.

    Local GovernmentRef: RCW 82.14.370(1), (3)(a)(i)

  • While the bill allows tax funds to be used for affordable workforce housing infrastructure, it does not mandate direct construction or subsidies to households—only infrastructure (e.g., roads, water, land acquisition). This limits direct impact on housing affordability for low-income residents, as costs of actual units remain unaddressed and may still exceed what households can pay.

    HousingRef: RCW 82.14.370(3)(a)(ii)

  • The bill permits use of tax revenue for economic development staff, but does not require measurable job creation or wage standards—allowing counties to fund administrative roles without guaranteed economic return, potentially resulting in inefficient or symbolic spending with limited net employment gains.

    Business & EmploymentRef: RCW 82.14.370(3)(a)(iii)

  • The 25-year sunset rule (or 2054 for pre-2009 counties) creates long-term revenue uncertainty for rural counties, discouraging multi-decade infrastructure planning and potentially leading to short-term, project-based spending rather than sustainable investment strategies.

    Local GovernmentLean peopleRef: RCW 82.14.370(5)(a)

  • The explicit prohibition on using tax proceeds for justice system facilities may prevent counties from addressing critical gaps in rural law enforcement, courts, or correctional infrastructure—despite documented needs in remote areas—potentially undermining public safety outcomes where resources are already scarce.

    Public SafetyRef: RCW 82.14.370(3)(a)(i)

Who Is Most Affected

Rural county governmentsPositive Impact

Rural county governments gain new revenue authority and expanded eligibility criteria, enabling them to fund infrastructure and housing projects previously beyond their fiscal reach—though they must navigate reporting burdens and sunset deadlines.

Low- and moderate-income rural householdsPositive Impact

Low- and moderate-income households in rural areas benefit from improved housing infrastructure and local services, but the bill does not guarantee direct rental assistance or price controls—so affordability gains may be limited without complementary policies.

Small businesses and agricultural employersMixed Impact

Small businesses and agricultural employers may benefit from improved infrastructure and local economic development staffing, but the tax does not include wage or hiring requirements—so job quality and retention remain uncertain.

State agenciesMixed Impact

State agencies (Commerce, OFM, State Auditor) gain new administrative duties but no additional funding—potentially straining existing resources while improving data transparency for rural policy decisions.

Local municipalities and port districtsPositive Impact

Municipalities and port districts gain consultation rights and potential access to tax-funded infrastructure, but lack independent taxing authority—so their influence depends on county leadership and planning priorities.