WeVote
Log In

Bill

Bill

HB 2428

Allowing cities to voluntarily share certain sales and use tax revenue.

2023-2024 Regular Session Introduced by Mark Klicker and 2 co-sponsors

Washington cities can now voluntarily share sales and use tax revenue through interlocal agreements, effective June 6, 2024, expanding regional fiscal cooperation.

Effective date 6/6/2024.
0
WeVote Research Nonpartisan
Bill Summary · HB 2428

Legislative bill overview

HB 2428 permits Washington cities to voluntarily share a portion of their sales and use tax revenue with other municipalities or regional entities through interlocal agreements. The bill became law on March 14, 2024, and takes effect June 6, 2024. This expands cities' flexibility in managing local tax revenues beyond their traditional use.

Why is this important

Cities often compete for economic development and tax base, but regional challenges like affordable housing, transportation, and poverty require coordinated funding. This law enables voluntary revenue-sharing arrangements that could help address cross-jurisdictional issues while respecting local autonomy. However, it also raises questions about how cities will balance local needs against regional contributions.

Potential points of contention

  • Local control concerns: Cities may feel pressure—implicit or explicit—to contribute tax revenue despite stated voluntariness, potentially undermining local spending priorities
  • Equity and fairness: Wealthier cities may contribute more while benefiting less, or vice versa, creating disputes over fair burden-sharing formulas
  • Accountability: Revenue-sharing through interlocal agreements may lack transparency about how shared funds are used and monitored compared to direct city spending

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.