Klicker bill to allow local governments to share certain tax revenue unanimously passes the Senate

Local governments may soon be able to combine their resources thanks to a bipartisan bill from Rep. Mark Klicker.

The Washington State Senate unanimously approved House Bill 2428 on Thursday, which would allow cities and towns to voluntarily enter interlocal agreements to share a portion of general-purpose local government sales and use tax revenue.

“I’m happy to see this bill move forward because it has the potential to have a big impact in my district,” said Klicker, R-Walla Walla. “It is a simple bill, but for smaller cities and towns, especially in more rural areas, this legislation would make a real difference.

“Allowing local governments to create these types of agreements would eliminate the competition between cities for much-needed sales tax revenue. That would help both parties increase revenue and spur more infrastructure and economic growth.”

Under the bill, local governments or other public agencies would be able to enter an interlocal agreement by consenting to cooperatively conduct government activities or provide services. The agreement must include certain terms, such as the duration of the agreement, the precise organization of any entity created, the purpose of the agreement, how the undertaking will be financed, and how the agreement can be terminated.

In addition to the terms required to be included in any interlocal agreement, an agreement to share sales and use tax revenue must include the area or areas in which the agreement applies, if it is only applicable to revenue collected in certain areas. It must also include the amount or proportion of revenue to be shared and the mechanism for sharing it.

“I’m looking forward to seeing how the cities of Walla Walla and College Place in my district take advantage of this legislation,” said Klicker. “They already work together on many things, including infrastructure and their efforts to recruit larger scale retail to the area. This legislation would give those efforts a boost and help smaller cities and towns throughout Washington.”

House Bill 2428 now heads to the governor’s desk to await his signature.


Washington State House Republican Communications