The bill seeks to enhance the flexibility of funding sources for public safety and affordable housing by amending the local real estate excise tax provisions in the Revised Code of Washington (RCW). Key amendments include clarifying the definition of "sale," adjusting timeframes for the transfer of controlling interests in real property, and ensuring consistency in numerical representation by changing references from "thirty-six" months to "36" months and "sixty" days to "60" days. The bill introduces new exemptions for transfers related to low-income housing developments and residential properties for individuals with developmental disabilities, emphasizing the importance of maintaining these properties for supportive living. It also establishes specific requirements for qualifying entities to retain their tax-exempt status and mandates data collection to assess the fiscal impact of these exemptions.

Additionally, the bill outlines new definitions related to affordable housing and community services, including "exempt community purpose" and "qualified space." It allows counties and cities to impose an excise tax of up to 0.5% on real property sales, with revenues directed towards capital projects, particularly those addressing affordable housing and homelessness. The allocation of tax revenues is modified to enable greater funding for the maintenance and operation of existing projects. The bill also creates a distinct framework for capital project funding, exempting certain sections of the RCW, and includes a sunset provision for specific sections to expire on January 1, 2030. Overall, the legislation aims to streamline funding processes while ensuring accountability and transparency in the management of community resources.

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