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Bill

HB 1981

Imposing a local option tax on the sale or transfer of renewable energy facilities.

2025-2026 Regular Session Introduced by Mary Dye and 1 co-sponsor

Washington bill authorizing local option taxes on renewable energy facility sales to generate community revenue from clean energy development.

First reading, referred to Finance.
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Bill Summary · HB 1981

Legislative bill overview

HB 1981 would authorize Washington counties and cities to impose a local option tax on the sale or transfer of renewable energy facilities within their jurisdictions. The bill gives local governments the authority to levy this tax as a new revenue source, though it does not mandate such a tax. This represents an expansion of local taxing authority specifically targeting renewable energy infrastructure transactions.

Why is this important

Renewable energy development is increasingly significant for Washington's economic and environmental goals, and this bill would allow communities to capture local tax revenue from these transactions. The ability to tax renewable energy facility sales could provide funding for local services, infrastructure, or community benefits—but could also affect the cost and feasibility of renewable projects in specific jurisdictions. This touches on broader questions about how clean energy transitions are funded and which communities benefit economically from green infrastructure.

Potential points of contention

  • Competitiveness and development incentives: Local taxes on renewable energy sales could make projects less financially attractive in some jurisdictions, potentially driving development to areas without such taxes and creating uneven clean energy deployment across the state.
  • Cost pass-through concerns: Opponents may argue that transfer taxes ultimately increase energy costs for consumers, while supporters contend local governments deserve revenue from development occurring within their borders.
  • Definitions and scope ambiguity: Questions about which facilities qualify (solar, wind, hydroelectric, geothermal) and whether the tax applies to all transfers or only initial development could create implementation disputes.

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

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