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Bill

HB 1650

Concerning the addition of airport capital projects as an allowable use of local real estate excise tax revenues.

2025-2026 Regular Session Introduced by Andrew Barkis and 6 co-sponsors

Washington allows cities to use local real estate excise taxes for airport capital projects, creating new funding for airport infrastructure improvements.

Effective date 7/27/2025.
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Bill Summary · HB 1650

Legislative bill overview

HB 1650 expands the allowable uses of local real estate excise tax (REET) revenues in Washington to include airport capital projects. Previously, these tax revenues were restricted to specific uses like affordable housing, transit, and infrastructure. This change enables municipalities to allocate REET funds toward airport improvements and expansions.

Why is this important

Airports are critical economic infrastructure that support regional commerce, tourism, and job creation. By allowing REET funding, local communities gain a new revenue tool to upgrade aging airport facilities without relying solely on federal grants or general fund appropriations. This could accelerate capital improvements at smaller and mid-sized airports that serve rural and suburban areas.

Potential points of contention

  • Housing advocates may object to redirecting REET revenues away from affordable housing, which was a primary policy goal when REET was originally designed and has faced persistent funding shortfalls
  • Equity concerns about whether airport investments primarily benefit wealthier travelers and businesses rather than addressing broader community needs
  • Revenue competition between municipalities—jurisdictions with airports gain a funding advantage while those without airports cannot access this revenue stream for any alternative capital projects

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

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