This bill amends RCW 82.46.075 to allow counties and cities in Washington to impose a real estate excise tax of up to 0.5 percent on property transactions, specifically for the development of affordable housing. The proceeds from this tax must be used exclusively for activities related to affordable housing, including acquisition, construction, rehabilitation, and maintenance for very low, low, and moderate-income individuals, as well as those with special needs. The bill also establishes that if a county imposes this tax after a city has already done so, the county must provide a credit against its tax for the full amount imposed by the city.

Additionally, the bill outlines the process for implementing this tax, which requires voter approval for a specified period and maximum rate. It stipulates that the legislative authority of the county or city must prepare a plan for the expenditure of the tax proceeds, which must be consulted with local elected officials and include a public hearing. The bill also modifies existing language regarding the tax obligations of purchasers and sellers, ensuring that at least 0.5 of the obligation falls on the purchaser, and clarifies the enforcement mechanisms for the tax.

Statutes affected:
Original Bill: 82.46.075
Substitute Bill: 82.46.075