Drafter
Clerk 04/16/2026
Title
AN ORDINANCE imposing an additional sales and use tax of one-hundredth of one percent, as authorized in Chapter 221, Laws of Washington 2026); amending Ordinance 175752, Section 12, as amended, and K.C.C. 4A.200.355, adding a new chapter to K.C.C. Title 4A, and establishing an effective date.
Body
PREAMBLE:
In 2020, there were 10,101 extremely low-income households and 11,741 low-income households in King County containing at least one child aged six years old and younger. Low-income and cost-burdened households are at higher risk of housing instability.
In 2024, there were 1,959 children under 18 years old and 1,555 parents experiencing homelessness in King County, while there are approximately 900 emergency shelter beds available for households with adults and children.
Additional funding is required to address the urgent need for shelter and rental assistance for families with children in King County.
In November 2015, King County declared a state of emergency to address the homelessness crisis.
In the 2026 Regular Session, the Washington state Legislature approved, and the Governor signed, Engrossed Substitute House Bill 2442, which became Chapter 221, Laws of Washington 2026 ("the Act").
The Act authorizes the legislative authority of a county to impose a sales and use tax for providing additional services that assist children and their families, including child care, perinatal support services, before-school and after-school based youth services, workforce capacity building, shelter and rental assistance, and client transportation.
The metropolitan King County council has determined that imposing the sales and use tax to provide shelter and rental assistance for children and their families will benefit the county's residents.
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Findings:
A. RCW 82.14.055 states that a local sales and use tax change may take effect no sooner than seventy-five days after the department of revenue receives notice of the change and only on the first day of January, April, or July.
B. RCW 82.14.055 further states that a "local sales and use tax change" means enactment or revision of local sales and use taxes.
C. Chapter 221, Laws of Washington 2026 authorized the legislative authority of a county or city to impose a one-hundredth of one percent sales and use tax solely for the purpose of providing additional services that assist children and their families. Revenues from this sales tax can be used for child care; perinatal support services; before-school and after-school services that address mental, social, and physical health; workforce capacity building; shelter and rental assistance; and client transportation.
SECTION 2. Sections 3 through 7 of this ordinance should constitute a new chapter in K.C.C. Title 4A.
NEW SECTION. SECTION 3. For the purposes of this chapter, unless the context clearly requires otherwise, "proceeds" means the principal amount of moneys received from the Washington state Department of Revenue from the collection of the additional sales and use tax authorized by this chapter and RCW 82.14.XXX (Chapter 221, Laws of Washington 2026, Section 202) and any interest earnings on the moneys.
NEW SECTION. SECTION 4.
A. To provide necessary moneys for the purposes identified in section 6 of this ordinance, an additional one-hundredth of one percent sales and use tax is hereby levied, fixed and imposed on all taxable events within King County as defined in chapter 82.08 or 82.12RCW.
B. The tax shall be imposed upon and collected from those persons from whom sales tax or use tax is collected by the state in accordance with chapter 82.12 RCW, and shall be collected at the rate of one-hundredth of one percent of the selling price, in the case of a sales tax, or value of the article use, in the case of a use tax.
C. The additional sales and use tax shall be in addition to all other existing sales and use taxes currently imposed by the county.
D. The budget director shall immediately provide notice to the state Department of Revenue of the tax imposed by this chapter as required by RCW 82.14.055 and is authorized to execute any necessary agreement with the state Department of Revenue concerning the collection and administration of the tax imposed by this chapter.
NEW SECTION. SECTION 5. The proceeds shall be deposited in the housing and community development fund.
NEW SECTION. SECTION 6.
A. Proceeds shall be expended and apportioned among eligible uses set out in and in a manner consistent with Chapter 221, Laws of Washington 2026 as now existing, hereafter amended or as superseded.
B. Proceeds shall be used solely for the purpose of providing additional services as listed in RCW 82.14.XXX (Chapter 221, Laws of Washington 2026 , Section 202), that assist children and their families.
NEW SECTION. SECTION 7.
If, in accordance with RCW 82.14.XXX (Chapter 221, Laws of Washington 2026, Section 202), a city located within the county imposes a sales and use tax, the county must provide a credit against the tax the county shall impose under section 4 of this ordinance to the extent the total county and city tax rate under this chapter would exceed 0.01 percent.
SECTION 8. Ordinance 175752, Section 12, as amended, and K.C.C. 4A.200.355 are hereby amended to read as follows:
A. There is hereby created the housing and community development fund.
B. The fund shall be a first tier fund. It is a special revenue fund.
C. The director of the department of community and human services shall be the manager of the fund.
D.1. The fund shall be used to collect revenue from federal, state and other funding sources to support housing and community development projects.
2. Moneys in the fund shall be expended consistent with applicable funding sources to support:
(((a))) a. noncounty organization projects that acquire, renovate or construct housing for very low to moderate-income individuals and families, including homeless households and households with special housing needs;
(((b))) b. operating costs for housing projects identified in subsection D.2.a. of this section, rental assistance and services for low-income individuals and families, including homeless households and households with special housing needs;
(((c))) c. noncounty organization projects related to community development activities; ((and))
(((d))) d. county costs to administer this fund; and
e. provide those additional services listed in RCW 82.14.XXX (Chapter 221, Laws of Washington 2026, Section 202) that assist children and their families.
3. When moneys in the fund are used to support housing projects identified in subsection D.2.a. of this section, the noncounty organization shall grant King County a property interest in each project, in a form acceptable to the county.
SECTION 9. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the
application of the provision to other persons or circumstances is not affected.
SECTION 10. This ordinance takes effect January 1, 2027.