The bill, titled the "Affordable Homes Act," seeks to tackle housing affordability and homelessness in Washington State by implementing a new real estate transfer tax on residential property sales that exceed certain price thresholds. It introduces a tiered excise tax structure for real estate transactions, with rates ranging from 0.20% for properties valued at $500,000 or less to 0.60% for those over $3,000,000, and a 0.25% rate for timberland or agricultural land. The revenue generated from these taxes will be allocated to newly established accounts, including a developmental disabilities housing and services account, a housing stability account, and an affordable housing for all account, which will fund various housing initiatives such as affordable housing construction, rental subsidies, and supportive services for low-income households.

Additionally, the bill amends existing laws regarding real estate excise taxes, allowing counties to replace previously imposed taxes with the new structure and requiring them to identify funded capital projects in their budgets. It also mandates that the selling price thresholds for the new taxes be adjusted every four years based on the consumer price index for shelter. The act is set to take effect on January 1, 2026, and emphasizes a comprehensive approach to increasing the supply of affordable housing and reducing homelessness in the state.

Statutes affected:
Original Bill: 82.45.060, 43.330.181, 82.46.035