This bill amends RCW 82.46.075 to allow counties and cities in Washington State 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. Additionally, if a county imposes this tax after a city within its jurisdiction has already done so, the county must provide a tax credit equivalent to the amount imposed by the city.

The bill also establishes that any tax imposed under this section requires approval from a majority of voters in the respective county or city. The legislative authority must propose the tax through a resolution or a petition signed by at least 10 percent of the voters from the last general election. Furthermore, it mandates that a plan for the expenditure of the tax proceeds be prepared and made public prior to the election, ensuring that local elected officials and the public are consulted. The bill removes previous requirements that limited the imposition of this tax based on other tax conditions, thereby streamlining the process for local governments to fund affordable housing initiatives.

Statutes affected:
Original Bill: 82.46.075
Substitute Bill: 82.46.075