2025 Affordable and Supportive Housing Sales and Use Tax: Collection and Use of Revenue (December 1, 2025)
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Summary
Submitted under RCW 82.14.540(11), this is the Washington State Department of Commerce's annual report to the Legislature on the collection and use of Affordable and Supportive Housing Sales and Use Tax revenue, dated December 1, 2025. It reports that 127 jurisdictions, 37 counties and 90 cities, received Department of Revenue distributions in state fiscal year 2025 totaling $26,922,129.73, and that 118 jurisdictions filed the required annual report. Jurisdictions spent $22,503,778.26: $1,182,483.55 on rent assistance, $14,967,464.39 on capital projects and $6,353,830.32 on operations and maintenance. Tables list each jurisdiction's distribution, rent assistance, capital projects, operations spending, other expenses and unit status, with 911 units in service reported.
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“2025 Affordable and Supportive Housing Sales and Use Tax: Collection and Use of Revenue (December 1, 2025).”
Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-affordable-and-supportive-housing-sales-and-use-tax-collection-and-use/
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2025 Affordable and Supportive Housing
Sales and Use Tax:
Collection and use of revenue
Annual report pursuant to RCW 82.14.540(11)
December 1, 2025
Report to the Legislature
HOUSING DIVISION Director Joe Nguyễn
Acknowledgments
Washington State Department of Commerce
Tedd Kelleher and Kennly Asato, Co-Assistant
Directors, Housing Division
Camille Gix, Policy Coordinator, Housing Division
Local government staff
Thank you to all the staff from the jurisdictions that
contributed data for this report.
1011 Plum Street SE
P.O. Box 42525
Olympia, WA 98504-2525
www.commerce.wa.gov
For people with disabilities, this report is available on
request in other formats. To submit a request, please call
7-1-1 and ask to be connected to 360-725-4000.
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Table of contents
Executive summary .............................................................................................................................................4
Introduction ........................................................................................................................................................5
Participating jurisdictions and revenue distributions ............................................................................................6
Jurisdictions' use of funds ................................................................................................................................ 11
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Executive summary
Overview
The 2019 Encouraging Investments in Affordable and Supportive Housing Act (RCW 82.14.540) authorized a new
state-shared local tax option for investments in affordable and supportive housing. It authorized a local sales tax
option that is a credit against the state sales tax rate. Jurisdictions can receive Affordable and Supportive Sales
and Use Tax Revenues for up to 20 years.
Statutory reporting directive
This report is submitted to fulfill statutory requirements outlined in RCW 82.14.540(11):
Counties and cities imposing the tax under this section must report annually to the department of commerce on the
collection and use of the revenue. The department of commerce must adopt rules prescribing content of such reports. By
December 1, 2019, and annually thereafter, and in compliance with RCW 43.01.036, the department of commerce must
submit a report annually to the appropriate legislative committees with regard to such uses.
The Washington State Department of Commerce (Commerce) completed rulemaking on April 13, 2020, to
prescribe the contents of jurisdictions' reports.
Summary of state fiscal year 2025 data
Commerce collected spending data from jurisdictions from July to September 2025. In total, 118 jurisdictions
completed the required annual report on revenue spending for state fiscal year 2025.1
A total of 127 jurisdictions — 37 counties and 90 cities — received distributions from the Department of Revenue
(DOR).
Twenty-eight of the 126 jurisdictions participate in interlocal agreements (ILAs) to pool and distribute their
revenue.2
The statewide DOR distribution was $26,922,129.73.
Most jurisdictions did not spend Affordable and Supportive Sales Tax revenue.
Sixteen jurisdictions or ILAs spent or committed funds toward capital projects, with an increase in total
expenditures from state fiscal year 2024.
Fifteen jurisdictions or ILAs used revenue for rent assistance programs.
Fourteen jurisdictions or ILAs used funds for operations and maintenance costs of new housing units.
Eight jurisdictions used revenue for other allowable purposes.
From state fiscal year 2024 to 2025, 746 newly funded units went into service.
1 The online report form and instructions are located on the Commerce website,
2 These jurisdictions are located in Benton County, Chelan County, Douglas County, Franklin County, Jefferson County, North King County,
South King County and Thurston County,
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Introduction
Background
RCW 82.14.540 authorized a new state-shared optional local sales tax for affordable and supportive housing
investments that is a credit against the state sales tax rate of 6.5%. The maximum rate imposed may not exceed
either 0.0146% or 0.0073%. Jurisdictions can receive Affordable and Supportive Sales and Use Tax revenues for up
to 20 years.
The maximum authorized tax distribution is based on the jurisdiction's taxable retail sales in state fiscal year 2019
multiplied by the authorized tax rate — 0.0073% or 0.0146%. For example, if a city's taxable retail sales were $1
million in fiscal year 2019, the maximum amount the city may receive is either $73 or $146 per fiscal year,
depending on its authorized rate. If that city had taxable retail sales of $50,000 for a particular month and was
eligible to receive the 0.0073% rate, it would receive $3.65 in tax distribution for that month.
The tax rate is based on three factors at the time of adoption:
1. The date of adoption
2. The presence of a qualifying local tax (cities only)
3. Whether the corresponding city or county was a participating jurisdiction
Allowable use of funds
Jurisdictions must use Affordable and Supportive Housing Sales and Use Tax revenues to provide housing and
services to people whose income is at or below 60% of the median income of the city or county imposing the tax.
All jurisdictions, no matter what size, are able to use these funds for rental assistance. Chapter 101, Laws of 2024
(SB 5604) amended the allowable uses for these funds to allow jurisdictions to use the funds for administrative
costs as long as the costs do not exceed 10%. 3
Agency roles and activities
Department of Revenue
The Department of Revenue interprets and implements RCW 82.14.540, making monthly revenue distributions to
jurisdictions and calculating the maximum tax distribution that participating jurisdictions may receive each year.
DOR collects minimal information from jurisdictions to administer the tax.
Department of Commerce
Participating jurisdictions must report to Commerce annually on the "collection and use of the revenues." Pursuant
to RCW 82.14.540, Commerce conducted rulemaking in 2019 and 2020 to prescribe the content of those reports.
Commerce collects information from jurisdictions on the collection and use of revenues and prepares this report
annually.
3 Washington State Legislature, "Senate Bill 5604 (2023–24 Session Laws),"
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Participating jurisdictions and revenue distributions
DOR reported that 127 jurisdictions — 37 counties and 90 cities — received distributions during state fiscal year
2025, which ran from July 1, 2024, through June 30, 2025. Statewide distributions totaled $26,922,129.73.
Table 1: Participating jurisdiction and state fiscal year 2025 distributions
Location Distribution
ADAMS COUNTY $51,473.23
AIRWAY HEIGHTS $19,353.36
ANACORTES $81,267.09
ARLINGTON $44,919.94
ASOTIN COUNTY $30,949.24
AUBURN/KING RTA $149,338.07
BAINBRIDGE ISLAND $43,463.82
BELLEVUE RTA $625,858.12
BENTON COUNTY $618,727.25
BONNEY LAKE RTA $49,389.32
BOTHELL/KING $106,990.94
BREMERTON $77,236.45
BURIEN $63,337.24
BURLINGTON $74,039.40
CARNATION $3,645.58
CASHMERE $5,052.43
CHELAN CITY $15,706.68
CHELAN COUNTY $199,558.97
CLALLAM COUNTY $136,012.20
CLARK COUNTY $773,383.81
CLYDE HILL $7,295.89
COLUMBIA COUNTY $10,364.43
COVINGTON $42,544.04
COWLITZ COUNTY $161,897.88
DAYTON $2,548.08
DES MOINES $32,666.74
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Location Distribution
DOUGLAS COUNTY $127,381.86
DUVALL $9,025.31
EAST WENATCHEE $33,224.72
EDMONDS $71,931.05
ELLENSBURG $85,189.37
ENUMCLAW $27,674.90
EVERETT RTA $224,718.31
FEDERAL WAY $125,065.50
FIFE $71,422.87
FORKS $4,713.90
FRANKLIN COUNTY $33,108.54
GARFIELD COUNTY $5,136.79
GRANT COUNTY $251,237.61
GRAYS HARBOR COUNTY $105,206.02
ISLAND COUNTY $146,440.13
ISSAQUAH RTA $122,956.20
JEFFERSON COUNTY $61,855.33
KALAMA $4,453.14
KENMORE $22,466.15
KENT RTA $194,889.31
KING COUNTY RTA $4,608,280.74
KIRKLAND $211,668.86
KITSAP COUNTY $548,947.89
KITTITAS COUNTY $79,043.90
KLICKITAT COUNTY $54,212.91
LACEY $110,373.93
LAKE FOREST PARK $9,970.02
LAKE STEVENS $34,891.73
LAKEWOOD $97,697.17
LEAVENWORTH $15,631.81
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Location Distribution
LEWIS COUNTY $233,150.81
LIBERTY LAKE $28,504.48
LINCOLN COUNTY $15,053.76
LONGVIEW $74,283.98
LYNNWOOD $196,819.21
MAPLE VALLEY $31,276.12
MARYSVILLE $94,117.37
MASON COUNTY $121,900.28
MEDINA $9,782.77
MERCER ISLAND $37,372.56
MILL CREEK $24,674.77
MONROE $45,540.66
MOSES LAKE $57,023.92
MOUNT VERNON $65,029.18
MUKILTEO $22,746.85
NEWCASTLE $12,152.37
NORMANDY PARK $5,447.45
NORTH BEND $23,323.54
OKANOGAN COUNTY $76,963.29
OLYMPIA $329,491.11
OMAK $16,931.69
PACIFIC COUNTY $40,900.11
PASCO $105,831.92
PEND OREILLE COUNTY $24,130.78
PIERCE COUNTY RTA $1,601,254.00
PORT ANGELES $58,025.41
PORT ORCHARD $44,553.73
PORT TOWNSEND $20,596.03
POULSBO $35,922.03
PUYALLUP $194,101.51
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Location Distribution
QUINCY $63,355.81
REDMOND RTA $289,265.78
RENTON RTA $226,431.09
RIDGEFIELD $23,741.44
SAMMAMISH RTA $53,098.32
SAN JUAN COUNTY $82,053.83
SEATAC $147,445.46
SEATTLE $4,228,362.75
SEDRO WOOLLEY $14,140.23
SEQUIM $29,920.82
SHORELINE $86,235.08
SKAGIT COUNTY $277,060.89
SKAMANIA COUNTY $11,908.78
SNOHOMISH CITY $37,391.39
SNOHOMISH COUNTY RTA $1,343,274.79
SNOQUALMIE $23,572.63
SPOKANE CITY $402,274.47
SPOKANE COUNTY $937,880.63
SPOKANE VALLEY $193,522.69
STANWOOD $14,544.47
STEVENSON $4,807.77
SUMNER $51,630.01
TACOMA $853,070.46
THURSTON COUNTY $502,551.38
TUKWILA $165,998.21
TUMWATER $63,703.51
UNIVERSITY PLACE $25,412.69
VANCOUVER $658,931.05
WAHKIAKUM COUNTY $6,946.98
WALLA WALLA COUNTY $96,061.54
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Location Distribution
WASHOUGAL $14,467.98
WENATCHEE $85,427.15
WHATCOM COUNTY $683,598.73
WHITMAN COUNTY $64,337.46
WINTHROP $3,550.64
WOODINVILLE RTA $63,206.56
WOODWAY $1,747.86
YAKIMA CITY $147,516.63
YAKIMA COUNTY $351,655.51
YARROW POINT $1,887.01
YELM $17,401.39
Total $26,922,129.73
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Jurisdictions' use of funds
Approximately 84% of participating jurisdictions completed the reporting requirement for fiscal year 2025. This
means the data reported below may not reflect a complete summary of statewide expenditures.
Jurisdictions spent a total of $22,503,778.26:
$1,182,483.55 on rent assistance, a 21% decrease from state fiscal year 2024
$14,967,464.39 on capital projects, a 33% increase from state fiscal year 2024
$6,353,830.32 on operations and maintenance, a 25% decrease from state fiscal year 2024
Fifty-three participating jurisdictions spent revenue on new or existing projects:
15 jurisdictions used revenue for rent assistance programs (shown in Table 2)
16 jurisdictions used revenue for capital projects (shown in Table 3)
14 jurisdictions used revenue to support operations and maintenance costs of new units of affordable housing
(shown in Table 4)
8 jurisdictions used revenue for other expenses (shown in Table 5)
Of the jurisdictions with capital expenditures (Table 6), they reported:
95 units under contract
549 units under construction
911 units in service
Table 2: Rent assistance expenditures by jurisdiction
Jurisdiction Total spent Total households served Priority population(s) served
Arlington $43,317.20 29 Pandemic recovery; below 60% Area Median Income (AMI)
Clark County $32,209.50 15 Below 30% AMI
Covington $32,177.77 158 Below 60% AMI
Enumclaw $173,807.15 145 Households paying more than 50% of income in rent
Lakewood $72,505.00 6 N/A
Mercer Island $96,724.00 36 Below 80% AMI
Monroe $100,290.15 49 Below 60% AMI
San Juan County $38,321.26 91 Seniors, people with disabilities, below 30% AMI
SeaTac $189,000.00 55 N/A
Sedro Wooley $15,443.75 7 N/A
Shoreline $155,181.85 77 N/A
Snohomish $51,326.00 27 Low income
Stanwood $13,838.02 10 Low income
Tukwila $39,500.00 28 Below 60% AMI
Whatcom County $128,841.90 58 Families with children; single adults
Total $1,182,483.55 791
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Table 3: Capital project expenditures by jurisdiction
Jurisdiction Total spent Activity
ARCH ILA $9,200,278.00 Emma McRedmond Manor
Chelan City $78,357.26 Heritage Heights memory care (remodel and kitchen renovation)
Crown Villa Apartments
Clark County $198,841.01
St. Helens Manor
Cowlitz County $120,138.56 Habitat for Humanity — A Brush with Kindness
Enumclaw $696,034.39 N/A
Kitsap County $399,010.49 Mile Hill Shelter (Pacific Building)
Thurston County ILA $55,511.00 Low Income Housing Institute — Lotus Court
8509 Idlewood Dr. SW
Lakewood $249,765.63
8125 Winona St.
Pateros Gardens Roof Replacement/Rehab
Okanogan County $554,070.93
Fyre Village Wildrose Multifamily Housing
LIHI Patsy Surh Place (new construction for seniors 50% AMI and below)
Pierce County $289,149.12 Mercy Aviva Crossing (new construction for 60% AMI and below)
Parkview Graham (group home rehab for SRO units)
Cottages at Pea Patch
San Juan County $37,555.03
OPAL Reddick Apartments rehab
Skagit County $3,342.32 NWYS North 4th Street Project
Victorian Place II
SKHHP ILA $140,000.00
Burien Miller Creek
Hifumi En (new construction)
Spokane County $2,919,631.68
Crosswalk 2.0 (new construction youth shelter)
Tacoma $19,935.22 Viridian Grove
Whatcom County $5,843.75 YWCA Garden Street Apartments
Total $14,967,464.39
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Table 4: Operations and maintenance expenditures by jurisdiction
Jurisdiction Total spent Units supported
Burlington $110,098.47 45
Cashmere $23,388.98 18
Chelan & Douglas Counties ILA $53,981.00 100
Lake Forest Park $16,834.32 0
Lincoln County $35,082.00 2
Moses Lake $28,828.95 37
Mount Vernon $61,869.81 70
Port Orchard $43,200.00 3
Seattle $2,491,565.64 204
Sedro Wooley $8,000.50 0
Skagit County $6,152.70 70
Vancouver $3,180,700.00 80
Wenatchee $84,067.00 20
Whatcom County 210,060.95 163
Total $6,353,830.32 812
Table 5: Other expenses reported
Jurisdiction Activity
Clallam County Rehabilitation
Covington Membership dues to South King County Housing and Homelessness Partners
Enumclaw Utility and bill assistance for families
Kittitas County Administrative expenses
Lakewood Single-family homeowner rehabilitation program for households below 60% AMI
Newcastle Membership to ARCH ILA trust fund
Okanogan County Repairs and improvements to apartments; Operations and planning for new youth village
Spokane City Administrative expenses
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
Table 6: Project and unit status by jurisdiction with capital projects
Jurisdiction Units under contract Units under construction Units in service
Anacortes 0 0 50
ARCH ILA 0 3 0
Benton & Franklin Counties 36 0 0
Burlington 0 0 45
Clallam County 0 5 0
Clark County 0 80 134
Kittitas County 50 0 0
Omak 0 2 0
Pierce County 0 354 225
Seattle 0 0 204
Skagit County 5 0 70
SKHHP ILA 0 0 91
Spokane County 0 1 86
Tacoma 0 98 0
Thurston County ILA 4 0 0
Whatcom County 0 6 6
Total 95 549 911
2025 AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX REPORT
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