Transportation (Local Government)

HB 2442 allows Washington counties and cities to impose specific real estate excise taxes to fund local capital projects and affordable housing. It authorizes a 0.25% tax on real property sales for general capital projects (like streets, parks, and sewer systems), with strict usage rules requiring projects to align with comprehensive plans. Additionally, it creates a separate 0.5% tax exclusively for affordable housing development, including acquisition, construction, and maintenance for low- and moderate-income residents. Local governments must document funding plans for future projects and follow voter approval processes for new taxes, while funds must be managed through competitive grant processes for housing initiatives. The bill directly affects local governments by expanding their tax tools for infrastructure and housing priorities.

This bill requires Washington state local governments (like cities, counties, and special districts) to provide underinsured motorist coverage for their employees. Specifically, it mandates that when employees are operating or riding in a government-owned vehicle for work, the coverage must protect them if they suffer injury or property damage from an accident involving an underinsured driver, hit-and-run vehicle, or "phantom vehicle." The coverage must have minimum limits of $25,000 per person and $50,000 per accident, and can be provided through private insurance, self-insurance, or other authorized methods. It does not cover non-employee passengers in government vehicles.

SB 5544 creates a new "county local road trust account" within the motor vehicle fund to finance improvements on county roads not classified as arterial or collector roads. It requires counties to spend all road revenues solely on road projects (with limited exemptions) to qualify for funding, prioritizing projects in overburdened communities, environmental health disparities areas, near Indian reservations, or for pedestrian facilities. Allowed projects include road reconstruction, bridge replacements, fish passage removal, and access improvements to community facilities. The program mandates joint planning with cities/towns for adjacent projects and requires counties to provide matching funds based on board-established rules. The bill takes effect July 1, 2025.