Washington HB 1763: Ensuring completion of conditional scholarship obligations and reducing penalties for excusable incomplete obligations.

Bill Text

AN ACT Relating to providing state funding for essential 1
affordable housing programs; amending RCW 67.28.181, 82.14.410, and 2
82.32.145; and adding a new chapter to Title 82 RCW.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. Beginning January 1, 2026, there is levied 5
and collected a special excise tax of six percent on each retail sale 6
of the furnishing of lodging constituting a short-term rental subject 7
to tax under chapter 82.08 RCW. The revenue collected under this 8
section must be deposited in the essential affordable housing local 9
assistance account created in section 3 of this act. The special 10
excise tax authorized under this section applies exclusively to sales 11
of furnishing of short-term rental lodging facilitated through a 12
short-term rental platform.13
NEW SECTION. Sec. 2. The definitions in this section apply 14
throughout this chapter unless the context clearly requires 15
otherwise.16
(1) "Housing infrastructure" means all costs for the improvements 17
needed in an area necessary to provide services that support the 18
construction and ongoing use of new housing. The variety of services 19
that support the construction and ongoing use of new housing include 20
H-0891.1
HOUSE BILL 1763
State of Washington 69th Legislature 2025 Regular Session
By Representatives Parshley, Thomas, Zahn, Ramel, Duerr, Doglio,
Pollet, and Reed
Read first time 01/31/25. Referred to Committee on Finance.
p. 1 HB 1763

transportation, water, sewer, stormwater, electricity, broadband, and 1
others as appropriate.2
(2) "Short-term rental" and "short-term rental platform" have the 3
same meanings as in RCW 64.37.010.4
NEW SECTION. Sec. 3. (1) The essential affordable housing local 5
assistance account is hereby created in the state treasury. All 6
receipts from the special excise tax authorized under section 1 of 7
this act must be deposited in the account. Moneys in the account may 8
be spent only after appropriation. The state treasurer shall 9
distribute funds in the account on a monthly basis. A local 10
jurisdiction must use the funds as provided in subsection (2) of this 11
section.12
(a) Counties shall receive the special excise tax amounts from 13
the furnishing of lodging of short-term rentals within the 14
unincorporated areas of the county; and15
(b) Cities and towns shall receive the special excise tax amounts 16
from the furnishing of lodging of short-term rentals within the 17
incorporated area of the city or town.18
(2)(a) Except as provided in (b) of this subsection, expenditures 19
from the account may be used by counties, cities, and towns 20
exclusively for the operating and capital costs of affordable housing 21
programs including, but not limited to, homeless housing assistance, 22
temporary shelters, and other related services, or housing 23
infrastructure projects. A county, city, or town may use revenues 24
collected under this section for contracts, loans, or grants to 25
nonprofit organizations or public housing authorities for services 26
related to affordable housing programs.27
(b) If using the funding collected from the special excise tax 28
under this section for housing infrastructure projects, a county, 29
city, or town must meet the following requirements:30
(i) The housing infrastructure project must be designed to meet 31
the maximum allowed density of the parcels it will serve;32
(ii) If the county, city, or town imposes impact fees for new 33
development, the county, city, or town must reduce the impact fees by 34
the proportional costs that are paid by the moneys collected from the 35
special excise tax under this section;36
(iii) Projects may not be in areas limited only to single-family 37
residential housing;38
p. 2 HB 1763

(iv) The county, city, or town must limit the size of any single-1
family residential unit constructed in the area served by the housing 2
infrastructure project funded, wholly or partially, to 2,000 square 3
feet or less; and4
(v) If the housing infrastructure project is within an urban 5
growth area designated as the 20-year growth boundary for a city, the 6
city must agree to annex the project area upon completion of the 7
project.8
(c) A county, city, or town may retain up to 20 percent of the 9
moneys received under this section in each calendar year for the 10
direct and indirect costs incurred in the administration of services 11
and programs as provided in (a) of this subsection.12
(3) The definitions in this subsection apply throughout this 13
section unless the context clearly requires otherwise.14
(a) "Housing infrastructure" means all costs for the improvements 15
needed in an area necessary to provide services that support the 16
construction and ongoing use of new housing. The variety of services 17
that support the construction and ongoing use of new housing include 18
transportation, water, sewer, stormwater, electricity, broadband, and 19
others as appropriate.20
(b) "Short-term rental"