Washington 2023-2024 Regular Session

Washington House Bill HB2354

Introduced
1/12/24  
Refer
1/12/24  
Report Pass
1/31/24  
Refer
1/31/24  
Report Pass
2/5/24  
Refer
2/5/24  
Engrossed
2/12/24  
Refer
2/14/24  
Report Pass
2/20/24  
Refer
2/21/24  
Report Pass
2/26/24  
Enrolled
3/7/24  
Chaptered
3/25/24  

Caption

Revised for 2nd Substitute: Creating an option for impacted taxing districts to provide a portion of their new revenue to support any tax increment area proposed within their jurisdiction and clarifying that a tax increment area must be dissolved when all bond obligations are paid.Original: Creating an option for impacted taxing districts to provide a portion of their new revenue to support any tax increment area proposed within their jurisdiction.

Impact

The implications of HB 2354 stand to influence how local governments can manage and utilize revenue generated from increased property values within TIAs. By allowing taxing districts to redirect new revenue towards these areas, the bill fosters a collaborative approach to economic development. It supports local initiatives aimed at improving infrastructure and public services, which can ultimately enhance the quality of life for residents. However, concerns arise regarding the potential for disparities in funding availability among different districts, possibly favoring wealthier areas over those that are more economically challenged.

Summary

House Bill 2354 aims to establish a framework allowing impacted taxing districts to allocate a portion of their new revenue to support tax increment areas (TIAs) proposed within their jurisdictions. This bill seeks to clarify the existing provisions related to the dissolution of TIAs, stating that such areas must be dissolved once all bond obligations are fulfilled. By introducing this option, the bill encourages local governments to invest in community development projects that can lead to revitalized areas, thus promoting economic growth and stability throughout the state.

Sentiment

Overall, the sentiment surrounding HB 2354 appears to be positive among proponents, who highlight its potential to stimulate local economies and provide necessary funding for essential community projects. Supporters include local government officials and economic development advocates who believe that incentivizing investments in TIAs can facilitate job creation and enhance property values. However, there are voices of caution, particularly from critics who argue that the bill's provisions may inadvertently benefit certain districts at the expense of others, potentially impeding equitable growth across the state.

Contention

Notable points of contention regarding HB 2354 center on the equity of resource allocation among taxing districts. Critics express concerns that the bill could lead to unequal distribution of funds, where affluent regions benefit disproportionately from new revenue streams, leaving poorer areas struggling for financial support. Additionally, the requirement for TIAs to be dissolved upon meeting bond obligations may limit the long-term effectiveness of such areas in promoting sustained local development. Thus, while the bill presents opportunities for local improvements, its implementation will need careful oversight to ensure that it does not exacerbate existing inequities.

Companion Bills

WA SB6230

Crossfiled Creating an option for impacted taxing districts to provide a portion of their new revenue to support any tax increment area proposed within their jurisdiction.

Previously Filed As

WA SB6230

Creating an option for impacted taxing districts to provide a portion of their new revenue to support any tax increment area proposed within their jurisdiction.

WA AB96

Developer-financed tax incremental districts.

WA SB103

Developer-financed tax incremental districts.

WA AB137

Maximum life and allocation period for Tax Incremental District Number 9 in the village of DeForest and the total value of taxable property that may be included in tax incremental financing districts created in the village of DeForest. (FE)

WA SB133

Maximum life and allocation period for Tax Incremental District Number 9 in the village of DeForest and the total value of taxable property that may be included in tax incremental financing districts created in the village of DeForest. (FE)

WA HB2437

Incentivizing retirement savings options for Washington businesses and their employees.

WA LR146

Interim study to examine the intersection of tax increment financing and affordable housing within the State of Nebraska

WA HB1756

Supporting clean energy through tax changes that increase revenue to local governments, schools, and impacted communities.

WA SJM4

Urging Congress to pass legislation to allow for optional, incremental transfer of federal lands to states.

WA SB5617

Revised for 1st Substitute: Supporting juveniles in and exiting detention by providing for a child in need of services process and supportive services.

Similar Bills

No similar bills found.