During the 2017 Legislative Session, the Legislature passed Engrossed House Bill 2163 (EHB 2163).
Part IV of this legislation eliminates Streamlined Sales Tax (SST) mitigation for local governments. The Legislature made changes during the 2019 Legislative Session to continue SST mitigation payments for certain local governments:
- As of July 1, 2017, transportation authorities, public transportation benefit areas, and regional transit authorities no longer receive SST mitigation payments.
As of Oct. 1, 2019, cities, counties, and public facility districts no longer receive SST mitigation payments:
- Exception: Cities having more than $50,000 in SST Mitigation payments in Calendar Year 2018 will continue to receive SST Mitigation payments through June 30, 2021.
Marketplace Fairness revenues offset mitigation payments
Beginning January 1, 2018, the department started evaluating the revenue gains from the Marketplace Fairness part of this legislation (Part II). These gains reduced the SST mitigation payments for cities, counties, and public facility districts beginning with the June 30, 2018 mitigation payment, and continue to reduce the amount for cities still receiving SST Mitigation payments.
Advisory Committee Meeting
In December 2017, the Department of Revenue convened with the SST Mitigations Advisory Committee to discuss the implementation of this bill.