Washington Amends Local Tax Increment Financing Laws with New Housing Provisions

The Washington Governor signed a law that amends laws related to local tax increment financing. The law includes: 1) expanding requirements for consultation with impacted taxing districts; 2) establishing mitigation procedures; 3) adding new provisions regarding affordable housing exemptions; and 4) clarifying that certain housing tax exemptions do not apply in tax increment financing areas in effect prior to June 2, 2026. The law takes effect June 2. [H.B. 2451, enacted 03/23/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.