The bill modifies the local real estate excise tax to enhance funding flexibility for public safety and affordable housing initiatives. It amends several sections of the Revised Code of Washington (RCW), including RCW 82.45.010 and 82.46.010, to redefine "sale" in real property transactions, incorporating the transfer of controlling interests in entities with real property interests within a 36-month period. The legislation introduces new exemptions for low-income housing developments and establishes criteria for affordable housing projects, ensuring they serve households with incomes not exceeding 80 percent of the median household income. Additionally, it mandates compliance from qualifying grantees regarding the use of properties for low-income housing, with penalties for non-compliance.

Furthermore, the bill allows counties and cities to impose an excise tax of up to 0.5% on real property sales, with revenues directed towards capital projects, including affordable housing and homelessness services. It modifies the allocation of tax revenues to enable greater funding for the maintenance and operation of existing projects. The bill also clarifies definitions related to nonprofit organizations and community services, while establishing a timeline for its provisions, with certain sections set to expire on January 1, 2030. Overall, the legislation aims to streamline the funding process for capital projects and support affordable housing initiatives while ensuring compliance with tax regulations.

Statutes affected:
Original Bill: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037
Substitute Bill: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037
Bill as Passed Legislature: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037
Session Law: 82.45.010, 82.46.010, 82.46.015, 82.46.035, 82.46.037