Providing a sales and use tax exemption for inputs required for salmon recovery projects.

SB 5383 exempts sales and use taxes on labor, materials, and equipment used in qualifying salmon recovery projects. It applies to sponsors (such as tribes, local governments, or nonprofits) receiving state funding for projects aimed at increasing salmon/steelhead stocks through habitat restoration, barrier removal, or hatchery improvements. To qualify, sponsors must obtain a department-issued exemption certificate and provide it to sellers before August 1, 2025. The exemption expires when the project is certified operationally complete, with sponsors required to pay any back taxes within 60 days of expiration. This policy directly reduces costs for entities undertaking state-funded salmon habitat restoration efforts.