This bill modifies the local real estate excise tax to enhance funding flexibility for public safety and facilities, particularly focusing on affordable housing and community services. It amends several sections of the Revised Code of Washington (RCW), including clarifying the definition of "sale" to encompass the transfer of a controlling interest in entities with real property interests within a 36-month period. Key insertions include a 50-year continued use requirement for properties serving individuals with developmental disabilities and provisions allowing the sale of qualified space in affordable housing developments to nonprofit organizations or public corporations for community purposes starting January 1, 2026. The bill also introduces new definitions, such as "exempt community purpose," which includes services benefiting tenants of affordable housing.

Additionally, the bill establishes exemptions from real estate excise taxes for certain transactions involving affordable housing developments and nonprofit organizations, allowing for the sale of qualified space in developments that qualify for property tax exemptions. It modifies the allocation of tax revenues, permitting cities and counties to use funds for the maintenance and operation of existing capital projects, thereby streamlining the use of tax revenues for affordable housing initiatives and community services. The bill also specifies that existing regulations under RCW 82.32.805 and 82.32.808 do not apply, indicating a shift in capital project funding management. The provisions are set to expire on January 1, 2030, with the bill officially entering law after receiving approval from the Governor on April 24, 2025.

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