SB 5138 Washington Senate · 2025-2026 Regular Session

Concerning public facilities districts.

Senate Bill 5138 updates the authority of public facilities districts (PFDs) to impose lodging taxes. It revises the minimum number of lodging units required for tax applicability and introduces new tax structures for PFDs in counties with populations over 1.5 million that operate convention and trade centers. These specific PFDs can impose lodging taxes up to 7% in their largest city and 2.8% in other areas. The bill also authorizes an additional 2% lodging tax, expiring by July 2029, specifically to repay obligations related to convention center projects. PFDs imposing this additional tax must make annual payments to the state, with provisions for loans if unable to meet these payments due to debt.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 6, 2025 Signed May 20, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Passed Legislature · 4 edits

MODERATE

This bill adds an expiration date to the tax authority for public facilities districts and introduces a new definition for 'community-initiated equitable development.' It also clarifies the tax rules for hostels and short-term rentals by renumbering existing definitions and adding specific exclusions for charitable organizations providing trauma housing.

Scope change

The bill's authority is now limited to a specific timeframe, and the scope of tax exemptions has been expanded to include certain charitable temporary housing providers.

TIMELINE

Added a new section stating that all provisions in this act expire on July 1, 2035.

DEFINITION

Added a new definition for 'community-initiated equitable development' to guide how tax proceeds must be used for affordable housing and community support.

Renumbered and slightly restructured the definitions for 'hostel' and 'short-term rental' to improve clarity and add specific exclusions.

ELIGIBILITY

Expanded the definition of 'short-term rental' to explicitly exclude units operated by registered charitable organizations providing temporary housing for trauma, injury, or disease treatment.

Floor votes · Senate Apr 17, 2025 · House Apr 12, 2025

How they voted

33–18

Passed

Total votes 51

Apr 17, 2025

D Democratic31

31 Yea

100% Yea

R Republican20

2 Yea 18 Nay

90% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Signed into law

Governor signed.

executive

Apr 22, 2025

Lower · Passed

Speaker signed.

lower

Apr 19, 2025

Upper · Passed

President signed.

upper

Apr 17, 2025

Upper · Passed

Passed final passage; yeas, 31; nays, 18; absent, 0; excused, 0.

upper

Apr 17, 2025

Upper · Passed

Senate concurred in House amendments.

upper

Apr 12, 2025

Lower · Passed

Floor amendment(s) adopted.

lower

Mar 31, 2025

Committee

Referred to Rules 2 Review.

lower

Mar 27, 2025

Lower · Passed

Minority; do not pass.

lower

Mar 27, 2025

Lower · Passed

FIN - Majority; do pass.

lower

Mar 27, 2025

Lower · Passed

Executive action taken in the House Committee on Finance at 1:30 PM.

lower

Mar 13, 2025

Lower · Passed

Public hearing in the House Committee on Finance at 1:30 PM.

lower

Jan 30, 2025

Upper · Passed

LGV - Majority; do pass.

upper

Jan 30, 2025

Upper · Passed

Executive action taken in the Senate Committee on Local Government at 1:30 PM.

upper

Jan 20, 2025

Upper · Passed

Public hearing in the Senate Committee on Local Government at 1:30 PM.

upper

1 primary · 3 co-sponsors