Washington 2025-2026 Regular Session Status: Enacted 3 D cosponsors

HB 2451 — Concerning local tax increment financing.

Last action — Effective date 6/2/2026.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 13, 2026. Enacted.

Signed by Governor Bob Ferguson (Democratic) on March 23, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 76% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (3 D).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

549 added · 858 removed

Plain-language change summary

The latest version of Bill HB 2451 includes a change in the numbering of line items and removes a reference to a specific section of the law (RCW 39.89.020). This makes the bill clearer and more focused on its main content regarding property tax definitions. Simplifying the references can help streamline the legislative process and improve understanding of the bill’s intent.

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H-3340.1 SUBSTITUTE HOUSE BILL 2451 State of Washington 69th Legislature 2026 Regular Session By House Local Government (originally sponsored by Representatives Duerr, Berg, and Parshley) READ FIRST TIME 02/03/26.
H-2858.1 HOUSE BILL 2451 State of Washington 69th Legislature 2026 Regular Session By Representatives Duerr, Berg, and Parshley Read first time 01/13/26.
Referred to Committee on Local Government.
amending RCW 39.114.010, 39.114.020, 39.114.030, 39.114.040, 39.114.050, and 39.89.020;
amending RCW 39.114.010, 39.114.020, 39.114.030, 39.114.040, and 39.114.050;
reenacting and amending RCW 84.14.020;
(((3))) (4) "Increment value" means 100 percent of any increase in the true and fair value of real property in an increment area that p.
(((3))) (4) "Increment value" means 100 percent of any increase in the true and fair value of real property in an increment area that is placed on the tax rolls after the increment area takes effect.
1 SHB 2451 is placed on the tax rolls after the increment area takes effect.
(((4))) (5) "Local government" means any city, town, county, port district, or any combination thereof.
p.
1 HB 2451 (((4))) (5) "Local government" means any city, town, county, port district, or any combination thereof.
p.
(a) Infrastructure improvements owned by a state or local government within or outside of and serving the increment area and p.
2 SHB 2451 (a) Infrastructure improvements owned by a state or local government within or outside of and serving the increment area and real property owned or acquired by a local government within the increment area including:
2 HB 2451 real property owned or acquired by a local government within the increment area including:
(a) Regular property taxes levied by port districts or public utility districts to the extent p.
(a) Regular property taxes levied by port districts or public utility districts to the extent necessary for the payments of principal and interest on general obligation debt;
3 SHB 2451 necessary for the payments of principal and interest on general obligation debt;
and (b) regular property taxes levied by the state p.
and (b) regular property taxes levied by the state for the support of the common schools under RCW 84.52.065.
3 HB 2451 for the support of the common schools under RCW 84.52.065.
If a sponsoring jurisdiction creates two increment areas, the total combined assessed valuation in both of the two increment areas may not equal more than $200,000,000 as adjusted annually by the consumer price index or more than 20 percent of the sponsoring jurisdiction's p.
If a sponsoring jurisdiction creates two increment areas, the total combined assessed valuation in both of the two increment areas may not equal more than $200,000,000 as adjusted annually by the consumer price index or more than 20 percent of the sponsoring jurisdiction's total assessed valuation, whichever is less, when the ordinances are passed creating the increment areas.
4 SHB 2451 total assessed valuation, whichever is less, when the ordinances are passed creating the increment areas.
p.
(ii) During the 2026 fiscal year, a sponsoring jurisdiction may enact a tax increment area or areas with a combined assessed valuation greater than $200,000,000 but no more than $500,000,000 if:
4 HB 2451 (ii) During the 2026 fiscal year, a sponsoring jurisdiction may enact a tax increment area or areas with a combined assessed valuation greater than $200,000,000 but no more than $500,000,000 if:
(g) The ordinance must provide that the increment area takes effect on June 1st following the adoption of the ordinance in (a) of this subsection;
5 SHB 2451 (g) The ordinance must provide that the increment area takes effect on June 1st following the adoption of the ordinance in (a) of this subsection;
5 HB 2451 (h) The sponsoring jurisdiction may not add additional public improvements to the project after adoption of the ordinance creating the increment area or change the boundaries of the increment area.
(h) The sponsoring jurisdiction may not add additional public improvements to the project after adoption of the ordinance creating the increment area or change the boundaries of the increment area.
and (iv) The increased assessed value within the increment area that could reasonably be expected to occur without the proposed public improvements would be less than the increase in the assessed value estimated to result from the proposed development with the proposed public improvements ;
and (iv) The increased assessed value within the increment area that could reasonably be expected to occur without the proposed public improvements would be less than the increase in the assessed value estimated to result from the proposed development with the proposed public improvements;
and (k) The ordinance may not include areas within an increment area that already have the necessary public improvements that are required for the private development expected to be made possible by the adoption of the increment area and may not include areas within an increment area where a private building or structure is under construction, has an active application for construction, has a valid permit for construction, or is undergoing a project-level environmental review process under chapter 43.21C RCW, unless the sponsoring jurisdiction can demonstrate that the public improvements p.
and (k) The ordinance may not include areas within an increment area that already have necessary public improvements for development or where a private building or structure is under construction, has an active application for construction, has a valid permit for construction, or is undergoing a project-level environmental review process under chapter 43.21C RCW, before the formation of an increment area.
6 SHB 2451 developed in the increment area are necessary for the private development of projects that are seeking permit applications or under construction at the time the increment area is approved, before the formation of an increment area.
(a) A statement of objectives of the local government for the designated increment area;
p.
6 HB 2451 (a) A statement of objectives of the local government for the designated increment area;
(f) A ((description)) list of the public improvements, including individual improvements in priority order with each improvement's nexus to encouraging private development, estimated completion date, estimated public improvement costs, proposed funding sources, and the estimated amount of bonds or other obligations expected to be issued to finance the public improvement costs and repaid with tax allocation revenues that can reasonably be expected to be completed within the first seven years of the project.
(f) A ((description)) list of the public improvements, including individual improvements in priority order with each improvement's nexus to encouraging private development, estimated completion date, estimated public improvement costs, proposed funding sources, and the estimated amount of bonds or other obligations expected to be issued to finance the public improvement costs and repaid with tax allocation revenues;
The list should reflect the capital plans of the sponsoring jurisdiction and the reliance of those plans on investments by partners.
When capital plans change, the sponsoring jurisdiction may reprioritize the list of public improvements.
When the list is not reflected in the capital plans of the sponsoring jurisdiction, those public improvements shall be allowable only if the governing body makes a finding that the public improvements serve the goals and objectives of the capital plans;
p.
(i) Affordable and low-income housing;
7 SHB 2451 (i) Affordable and low-income housing;
and (k) An assessment of any impacts of any other junior taxing districts not referenced in (i) of this subsection (2))) taxing districts.
and p.
7 HB 2451 (k) An assessment of any impacts of any other junior taxing districts not referenced in (i) of this subsection (2))) taxing districts.
p.
(b) If the parties cannot agree pursuant to (a) of this subsection (5), the parties must proceed to arbitration to determine the appropriate mitigation plan.
8 SHB 2451 (b) If the parties cannot agree pursuant to (a) of this subsection (5), the parties must proceed to arbitration to determine the appropriate mitigation plan.
(6)(a) For increment areas that take effect after June 1, 2026, the local government designating the increment area and any impacted taxing district must begin negotiations to develop an agreement if a taxing district, within 30 days of receiving the project analysis as required in subsection (8) of this section, indicates any of the following conditions:
p.
8 HB 2451 (6)(a) For increment areas that take effect after June 1, 2026, the local government designating the increment area and any impacted taxing district must begin negotiations to develop an agreement if a taxing district, within 30 days of receiving the project analysis as required in subsection (8) of this section, indicates any of the following conditions:
p.
(c) If the parties cannot agree pursuant to (a) of this subsection (6), the parties must proceed to mediation within 30 days of the end of the notice and consultation period in RCW 39.114.040 to further attempt to reach an agreement.
9 SHB 2451 (c) If the parties cannot agree pursuant to (a) of this subsection (6), the parties must proceed to mediation within 30 days of the end of the notice and consultation period in RCW 39.114.040 to further attempt to reach an agreement.
If the two are unable to agree on the appointment of the third arbitrator within this 60-day period, then the third arbitrator must be appointed by a judge in the superior court of the county within which the largest portion of the increment area is located.
If the two are unable to agree on the appointment of the third arbitrator within this 60-day p.
9 HB 2451 period, then the third arbitrator must be appointed by a judge in the superior court of the county within which the largest portion of the increment area is located.
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(e) Mitigation may include reductions or suspensions in the percentage or term of tax allocation revenues transferred to the local government designating the increment area, the use of tax allocation revenues to fund public improvements to serve the projected development in the increment area, and other provisions p.
(e) Mitigation may include reductions or suspensions in the percentage or term of tax allocation revenues transferred to the local government designating the increment area, the use of tax allocation revenues to fund public improvements to serve the projected development in the increment area, and other provisions designed to mitigate the impacts on taxing districts.
10 SHB 2451 designed to mitigate the impacts on taxing districts.
(a) Hold at least two public ((briefings)) hearings for the community solely on the tax increment project that include the description of the increment area, the public improvements proposed to be financed with the tax allocation revenues, and a detailed estimate of tax revenues for the participating local governments and taxing districts, including the amounts allocated to the increment public improvements.
(a) Hold at least two public ((briefings)) hearings for the community solely on the tax increment project that include the description of the increment area, the public improvements proposed to be financed with the tax allocation revenues, and a detailed estimate of tax revenues for the participating local governments and p.
10 HB 2451 taxing districts, including the amounts allocated to the increment public improvements.
p.
Sec.
11 SHB 2451 Sec.
Sec.
p.
11 HB 2451 Sec.
and p.
and (4)(a) Prepare and make available to the residents of all impacted taxing jurisdictions an annual report on the status of the increment area, including:
12 SHB 2451 (4)(a) Prepare and make available to the residents of all impacted taxing jurisdictions an annual report on the status of the increment area, including:
(1) Commencing in the calendar year immediately following the calendar year in which the increment area takes effect in accordance with RCW 39.114.020, the county treasurer shall distribute receipts from regular property taxes imposed on real property located in the increment area as follows:
(1) Commencing in the calendar year immediately following the calendar year in which the increment area takes effect in accordance p.
12 HB 2451 with RCW 39.114.020, the county treasurer shall distribute receipts from regular property taxes imposed on real property located in the increment area as follows:
The local government that designated the increment area shall receive no more than is needed to pay or repay costs directly associated with the public improvements identified in the approved ordinance and may agree to receive less than the full amount of this portion, as long p.
The local government that designated the increment area shall receive no more than is needed to pay or repay costs directly associated with the public improvements identified in the approved ordinance and may agree to receive less than the full amount of this portion, as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of these tax receipts shall be allocated to the taxing districts that imposed regular property taxes, or have regular property taxes imposed for them, in the increment area for collection that year in proportion to their regular tax levy rates for collection that year.
13 SHB 2451 as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of these tax receipts shall be allocated to the taxing districts that imposed regular property taxes, or have regular property taxes imposed for them, in the increment area for collection that year in proportion to their regular tax levy rates for collection that year.
and (iii) Port districts or public utility districts specifically for the purpose of making required payments of principal and interest or general indebtedness.
and p.
13 HB 2451 (iii) Port districts or public utility districts specifically for the purpose of making required payments of principal and interest or general indebtedness.
(4) The apportionment and distribution of portions of the regular property taxes levied by or for each taxing district upon the increment value within the increment area pursuant to this section p.
(4) The apportionment and distribution of portions of the regular property taxes levied by or for each taxing district upon the increment value within the increment area pursuant to this section shall not affect or be deemed to affect the rate of taxes levied by or within any such taxing district or the consistency of any such levies with the uniformity requirement of Article VII, section 1 of the state Constitution.
14 SHB 2451 shall not affect or be deemed to affect the rate of taxes levied by or within any such taxing district or the consistency of any such levies with the uniformity requirement of Article VII, section 1 of the state Constitution.
Sec.
6.
RCW 84.14.020 and 2025 c 267 s 13 and 2025 c 164 s 2 are each reenacted and amended to read as follows:
(1)(a) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows:
(i) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter before July 22, 2007, the value is exempt for 10 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate;
(ii) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter on or after July 22, 2007, the value is exempt:
(A) For eight successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate;
(B) For 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(ii)(B).
For the property to qualify for the 12-year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multifamily housing units as p.
15 SHB 2451 affordable housing units to either low-income or moderate-income households, or both, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter.
In the case of projects intended exclusively for owner occupancy, the local government must require the applicant to record a covenant or deed restriction that ensures the affordability requirements and other conditions of the exemption are met, and the minimum requirement of this subsection (1)(a)(ii)(B) may be satisfied solely through housing affordable to moderate-income households;
(C) For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(ii)(C).
For the property to qualify for the 20-year exemption under this subsection, the project must be located within one mile of high capacity transit of at least 15 minute scheduled frequency, in a city that has implemented a mandatory inclusionary zoning requirement for affordable housing that ensures affordability of housing units for a period of at least 99 years and that has a population of at least 15,000.
To qualify for the exemption provided in this subsection (1)(a)(ii)(C), the applicant must commit to renting at least 20 percent of the dwelling units as affordable to low-income households for a term of at least 99 years, and the property must satisfy that commitment and all required affordability and income eligibility conditions adopted by the local government under this chapter.
A city must require the applicant to record a covenant or deed restriction that ensures the continuing rental of units subject to these affordability requirements consistent with the conditions in this subsection (1)(a)(ii)(C) for a period of no less than 99 years.
The covenant or deed restriction must also address criteria and policies to maintain public benefit if the property is converted to a use other than which continues to provide for permanently affordable low-income housing consistent with this subsection (1)(a)(ii)(C);
or (D) For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property is located fully or partially with [within] a station area of a city and meets the affordability requirements in RCW 36.70A.840(7)(a).
A county may approve an exemption under this subsection for multifamily residential housing p.
16 SHB 2451 within a station area if the property otherwise qualifies for the exemption under this chapter and meets the density requirements in RCW 36.70A.840(2)(a) and affordability requirements in RCW 36.70A.840(7)(a).
A city or county must require the applicant to record a covenant or deed restriction that ensures the continuing rental or ownership of units subject to the affordability requirements in RCW 36.70A.840(7)(a) for a period of no less than 50 years.
The covenant or deed restriction must also address criteria and policies to maintain public benefit if the property is converted to a use other than one which continues to provide for permanently affordable low-income housing consistent with RCW 36.70A.840(7)(a).
This exemption does not apply in tax increment financing areas in effect prior to June 2, 2026;
and (iii) Until December 31, 2026, for a city as defined in RCW 84.14.010(3)(d), for 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(iii).
For the property to qualify for the 12-year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multifamily housing units as affordable housing units to either low-income or moderate-income households, or both, the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter, and the area must be zoned to have an average minimum density equivalent to 15 dwelling units or more per gross acre.
In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection (1)(a)(iii) may be satisfied solely through housing affordable to either low-income or moderate-income households, or both.
(b) The exemptions provided in (a)(i) through (iii) of this subsection do not include the value of land or nonhousing-related improvements not qualifying under this chapter.
(c) For properties receiving an exemption as provided in (a)(ii)(B) of this subsection that are in compliance with existing contracts and where the certificate of tax exemption is set to expire after June 11, 2020, but before December 31, 2021, the exemption is extended until December 31, 2021, provided that the property must satisfy any eligibility criteria or limitations provided in this p.
17 SHB 2451 chapter as a condition to the existing exemption for a given property continue to be met.
For all properties eligible to receive an extension pursuant to this subsection (1)(c), the city or county that issued the initial certificate of tax exemption, as required in RCW 84.14.090, must notify the county assessor and the applicant of the extension of the certificate of tax exemption.
(d) A county subject to the criteria for a residential targeted area in RCW 84.14.040(1)(d)(ii) may not approve a certificate of tax exemption eligibility for the eight-year exemption authorized under (a)(ii)(A) of this subsection (1).
(2) When a local government adopts guidelines pursuant to RCW 84.14.030(2) and includes conditions that must be satisfied with respect to individual dwelling units, rather than with respect to the multiple-unit housing as a whole or some minimum portion thereof, the exemption may, at the local government's discretion, be limited to the value of the qualifying improvements allocable to those dwelling units that meet the local guidelines.
(3) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter.
The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.
(4) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.
(5) At the conclusion of the exemption period, the value of the new housing construction, conversion, or rehabilitation improvements must be considered as new construction for the purposes of chapters 84.55 and 36.21 RCW as though the property was not exempt under this chapter.
(6) For properties that qualified for, satisfied the conditions of, and utilized the exemption under subsection (1)(a)(ii)(A) or (B) of this section, following the initial exemption period or the extension period authorized in subsection (1)(c) of this section, the exemption period may be extended for an additional 12 years for p.
18 SHB 2451 projects that are within 18 months of expiration contingent on city or county approval.
For the property to qualify for an extension under this subsection (6), the applicant must meet at a minimum the locally adopted requirements for the property to qualify for an exemption under subsection (1)(a)(ii)(B) of this section as applicable at the time of the extension application, and the applicant commits to renting or selling at least 20 percent of the multifamily housing units as affordable housing units for low-income households.
(7) At the end of both the 10th and 11th years of an extension, for 12-year extensions of the exemption, applicants must provide tenants of rent-restricted units with notification of intent to provide the tenant with rental relocation assistance as provided in subsection (8) of this section.
(8)(a) Except as provided in (b) of this subsection, for any 12- year exemption authorized under subsection (1)(a)(ii)(B) or (iii) of this section after July 25, 2021, or for any 12-year exemption extension authorized under subsection (6) of this section, at the expiration of the exemption the applicant must provide tenant relocation assistance in an amount equal to one month's rent to a qualified tenant within the final month of the qualified tenant's lease.
To be eligible for tenant relocation assistance under this subsection, the tenant must occupy an income-restricted unit at the time the exemption expires and must qualify as a low-income household under this chapter at the time relocation assistance is sought.
(b) If affordability requirements consistent, at a minimum, with those required under subsection (1)(a)(ii)(B) or (iii) of this section remain in place for the unit after the expiration of the exemption, relocation assistance in an amount equal to one month's rent must be provided to a qualified tenant within the final month of a qualified tenant's lease who occupies an income-restricted unit at the time those additional affordability requirements cease to apply to the unit.
(9) For compliance with the affordability requirements of subsection (1)(a)(ii)(B) or (C) or (a)(iii) of this section, a low- income or moderate-income household that initially qualifies for an income-restricted rental unit may continue to qualify as low-income or moderate-income until their adjusted household income exceeds 150 percent of the established income limit.
19 SHB 2451 (10) No new exemptions may be provided under this section beginning on or after January 1, 2032.
14 HB 2451 NEW SECTION.
No extensions may be granted under subsection (6) of this section on or after January 1, 2046.
7.
6.
RCW 39.89.020 and 2022 c 38 s 1 are each amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Assessed value of real property" means the valuation of real property as placed on the last completed assessment roll.
(2) "Increment area" means the geographic area from which taxes are to be appropriated to finance public improvements authorized under this chapter.
(3) "Increment value" means 75 percent of any increase in the true and fair value of real property in an increment area that is placed on the tax rolls after the increment area is created.
(4) "Local government" means any city, town, county, port district, or any combination thereof.
(5) "Ordinance" means any appropriate method of taking legislative action by a local government.
(6) "Permanently affordable housing" means housing, regardless of ownership, for which there is a legally binding, recorded document in effect that limits the price at which the owner may sell or restricts the occupancy of the unit to a qualified, low-income household, for a period of at least 40 years for a property used for shelter or rental housing, or for a period of at least 25 years for a property to be owned by a low-income household.
These documents include, but are not limited to, affordability covenants, deed restrictions, and community land trust leases.
Resale restrictions exercised by providers of permanently affordable housing can include, but are not limited to:
(a) Continuous ownership of land by a public entity or nonprofit housing provider with a lease allowing ownership of the structure by an income-eligible household;
(b) A nonpossessory interest or right in real property, such as a deed restriction, restrictive covenant, resale restriction, or other contractual agreement, that ensures affordability.
(7) "Public improvement costs" means the costs of:
(a) Design, planning, acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, and installation of public improvements;
(b) purchasing, rehabilitating, retrofitting for p.
20 SHB 2451 energy efficiency, and constructing housing for the purpose of creating or preserving permanently affordable housing;
(c) relocating, maintaining, and operating property pending construction of public improvements;
(d) relocating utilities as a result of public improvements;
(e) financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance public improvements, and any necessary reserves for general indebtedness;
(f) assessments incurred in revaluing real property for the purpose of determining the tax allocation base value that are in excess of costs incurred by the assessor in accordance with the revaluation plan under chapter 84.41 RCW, and the costs of apportioning the taxes and complying with this chapter and other applicable law;
and (g) administrative expenses and feasibility studies reasonably necessary and related to these costs, including related costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of community revitalization financing to fund the costs of the public improvements.
(8) "Public improvements" means:
(a) Infrastructure improvements within the increment area that include:
(i) Street and road construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks and streetlights;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities and recreational areas;
(vii) Stormwater and drainage management systems;
((and)) (viii) Permanently affordable housing;
and (ix) Public safety facilities;
and (b) Expenditures for any of the following purposes:
(i) Providing environmental analysis, professional management, planning, and promotion within the increment area, including the management and promotion of retail trade activities in the increment area;
(ii) Providing maintenance and security for common or public areas in the increment area;
or (iii) Historic preservation activities authorized under RCW 35.21.395.
p.
21 SHB 2451 (9) "Regular property taxes" means regular property taxes as defined in RCW 84.04.140, except:
(a) Regular property taxes levied by port districts or public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness;
and (b) regular property taxes levied by the state for the support of the common schools under RCW 84.52.065.
Regular property taxes do not include excess property tax levies that are exempt from the aggregate limits for junior and senior taxing districts as provided in RCW 84.52.043.
(10) "Tax allocation base value" means the true and fair value of real property located within an increment area for taxes imposed in the year in which the increment area is created, plus 25 percent of any increase in the true and fair value of real property located within an increment area that is placed on the assessment rolls after the increment area is created.
(11) "Tax allocation revenues" means those tax revenues derived from the imposition of regular property taxes on the increment value and distributed to finance public improvements.
(12) "Taxing districts" means a governmental entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved increment area.
(13) "Value of taxable property" means the value of the taxable property as defined in RCW 39.36.015.
NEW SECTION.
Sec.
8.
The provisions of this act do not modify or otherwise impact increment areas in place prior to June 2, 2026.
22 SHB 2451
15 HB 2451
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Action History

  1. Effective date 6/2/2026.

  2. Chapter 141, 2026 Laws.

  3. Governor signed.

  4. Delivered to Governor.

  5. President signed.

  6. Speaker signed.

  7. Third reading, passed; yeas, 48; nays, 1; absent, 0; excused, 0.

  8. Rules suspended. Placed on Third Reading.

  9. Placed on second reading by Rules Committee.

  10. Passed to Rules Committee for second reading.

  11. Minority; without recommendation.

  12. WM - Majority; do pass.

  13. Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.

  14. Public hearing in the Senate Committee on Ways & Means at 1:30 PM.

  15. Referred to Ways & Means.

  16. And refer to Ways & Means.

  17. LGV - Majority; do pass.

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

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

  20. First reading, referred to Local Government.

  21. Third reading, passed; yeas, 93; nays, 1; absent, 0; excused, 4.

  22. Rules suspended. Placed on Third Reading.

  23. Floor amendment(s) adopted.

  24. 2nd substitute bill substituted (FIN 26).

  25. Rules Committee relieved of further consideration. Placed on second reading.

  26. Referred to Rules 2 Review.

  27. Minority; without recommendation.

  28. FIN - Majority; 2nd substitute bill be substituted, do pass.

  29. Executive action taken in the House Committee on Finance at 8:00 AM.

  30. Public hearing in the House Committee on Finance at 8:00 AM.

  31. Referred to Finance.

  32. LG - Majority; 1st substitute bill be substituted, do pass.

  33. Executive action taken in the House Committee on Local Government at 10:30 AM.

  34. Public hearing in the House Committee on Local Government at 10:30 AM.

  35. First reading, referred to Local Government.

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 148 not signed on · 2 voted No

Sponsors (1)

Co-sponsors (2)

Not signed on (148)

148 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

3rd Reading & Final Passage (#6)

Passed 48 Yea · 1 Nay
Party YeaNayPresentNot Voting
Democrat 29100
Republican 19000
Total 48100
% of votes cast 98%2%0%0%
How each member voted (49)
Member Party Vote
Adrian Cortes Democrat Yea
Annette Cleveland Democrat Yea
Bob Hasegawa Democrat Nay
Claire Wilson Democrat Yea
Claudia Kauffman Democrat Yea
Deborah Krishnadasan Democrat Yea
Derek Stanford Democrat Yea
Drew Hansen Democrat Yea
Emily Alvarado Democrat Yea
Jamie Pedersen Democrat Yea
Javier Valdez Democrat Yea
Jesse Salomon Democrat Yea
Jessica Bateman Democrat Yea
John Lovick Democrat Yea
June Robinson Democrat Yea
Lisa Wellman Democrat Yea
Liz Lovelett Democrat Yea
Manka Dhingra Democrat Yea
Marcus Riccelli Democrat Yea
Marko Liias Democrat Yea
Mike Chapman Democrat Yea
Noel Frame Democrat Yea
Rebecca Saldaña Democrat Yea
Sharon Shewmake Democrat Yea
Steve Conway Democrat Yea
T'wina Nobles Democrat Yea
Tina Orwall Democrat Yea
Vandana Slatter Democrat Yea
Victoria Hunt Democrat Yea
Yasmin Trudeau Democrat Yea
Chris Gildon Republican Yea
Curtis King Republican Yea
Drew MacEwen Republican Yea
Jeff Holy Republican Yea
Jeff Wilson Republican Yea
Jim McCune Republican Yea
John Braun Republican Yea
Judy Warnick Republican Yea
Keith Goehner Republican Yea
Keith Wagoner Republican Yea
Leonard Christian Republican Yea
Mark Schoesler Republican Yea
Matt Boehnke Republican Yea
Nikki Torres Republican Yea
Paul Harris Republican Yea
Perry Dozier Republican Yea
Phil Fortunato Republican Yea
Ron Muzzall Republican Yea
Shelly Short Republican Yea

Official roll call →

3rd Reading & Final Passage (#30)

Passed 93 Yea · 1 Nay · 4 Other
Party YeaNayPresentNot Voting
Republican 35003
Democrat 58101
Total 93104
% of votes cast 95%1%0%4%
How each member voted (98)
Member Party Vote
Adam Bernbaum Democrat Yea
Adison Richards Democrat Yea
Adrian Cortes Democrat Yea
Alex Ramel Democrat Yea
Alicia Rule Democrat Yea
Amy Walen Democrat Yea
April Berg Democrat Yea
Beth Doglio Democrat Yea
Brandy Donaghy Democrat Yea
Brianna Thomas Democrat Yea
Chipalo Street Democrat Yea
Chris Stearns Democrat Yea
Cindy Ryu Democrat Yea
Clyde Shavers Democrat Yea
Dan Bronoske Democrat Yea
Darya Farivar Democrat Yea
Dave Paul Democrat Yea
David Hackney Democrat Yea
Davina Duerr Democrat Yea
Debra Entenman Democrat Yea
Debra Lekanoff Democrat Yea
Edwin Obras Democrat Yea
Gerry Pollet Democrat Yea
Greg Nance Democrat Yea
Jake Fey Democrat Yea
Jamila Taylor Democrat Yea
Janice Zahn Democrat Yea
Javier Valdez Democrat Yea
Joe Fitzgibbon Democrat Yea
Joe Timmons Democrat Yea
Julia Reed Democrat Yea
Kristine Reeves Democrat Yea
Larry Springer Democrat Yea
Lauren Davis Democrat Yea
Laurie Jinkins Democrat Yea
Lillian Ortiz-Self Democrat Yea
Lisa Callan Democrat Yea
Lisa Parshley Democrat Yea
Liz Berry Democrat Yea
Mari Leavitt Democrat Yea
Mary Fosse Democrat Yea
Melanie Morgan Democrat Yea
Mia Gregerson Democrat Yea
Monica Jurado Stonier Democrat Yea
My-Linh Thai Democrat Yea
Natasha Hill Democrat Yea
Nicole Macri Democrat Yea
Osman Salahuddin Democrat Yea
Roger Goodman Democrat Yea
Sharlett Mena Democrat Yea
Sharon Tomiko Santos Democrat Nay
Sharon Wylie Democrat Yea
Shaun Scott Democrat Yea
Shelley Kloba Democrat Yea
Steve Bergquist Democrat Yea
Steve Tharinger Democrat Not Voting
Strom Peterson Democrat Yea
Tarra Simmons Democrat Yea
Timm Ormsby Democrat Yea
Zach Hall Democrat Yea
Alex Ybarra Republican Yea
Andrew Barkis Republican Yea
Andrew Engell Republican Yea
April Connors Republican Yea
Brian Burnett Republican Yea
Carolyn Eslick Republican Not Voting
Chris Corry Republican Not Voting
Cyndy Jacobsen Republican Yea
Dan Griffey Republican Yea
David Stuebe Republican Yea
Deb Manjarrez Republican Yea
Drew Stokesbary Republican Yea
Ed Orcutt Republican Yea
Gloria Mendoza Republican Yea
Hunter Abell Republican Yea
Jenny Graham Republican Yea
Jeremie Dufault Republican Yea
Jim Walsh Republican Yea
Joe Schmick Republican Yea
Joel McEntire Republican Yea
John Ley Republican Yea
Joshua Penner Republican Yea
Kevin Waters Republican Yea
Mark Klicker Republican Yea
Mary Dye Republican Yea
Matt Marshall Republican Yea
Michael Keaton Republican Yea
Mike Steele Republican Yea
Mike Volz Republican Yea
Peter Abbarno Republican Yea
Rob Chase Republican Yea
Sam Low Republican Yea
Skyler Rude Republican Yea
Stephanie Barnard Republican Yea
Stephanie McClintock Republican Yea
Suzanne Schmidt Republican Yea
Tom Dent Republican Not Voting
Travis Couture Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

Who sponsors HB 2451?
HB 2451 is sponsored by Lisa Parshley (Democrat), April Berg (Democrat), and Davina Duerr (Democrat).
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This bill has been enacted into law. Introduced January 13, 2026. Enacted.
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