This bill amends RCW 82.46.035, which governs the excise tax on real estate transactions imposed by cities and counties in Washington. It requires that the legislative authority of any county or city must identify capital projects funded by this tax in their adopted budget. The bill specifies that the tax rate for the excise tax is set at a maximum of 0.25 percent of the selling price of real property. Additionally, it allows counties and cities to use revenues generated from this tax for financing capital projects as outlined in their comprehensive plans, with certain provisions allowing for a portion of the revenues to be used for the operation and maintenance of existing projects until December 31, 2023.

Significantly, the bill introduces new provisions that allow revenues from the excise tax to be used for planning, acquisition, construction, and improvement of facilities for those experiencing homelessness and affordable housing projects, provided these projects are supported through interlocal housing collaborations. It also establishes a cap on the amount that can be used annually for these specific capital projects, while ensuring that counties or cities that previously utilized these funds for housing projects before June 30, 2019, are exempt from these limits. Furthermore, the bill outlines the consequences of noncompliance with state regulations, temporarily rescinding the authority to impose the additional excise tax until compliance is restored.

Statutes affected:
Original Bill: 82.46.035