The "Affordable Homes Act" aims to tackle the shortage of affordable and workforce housing in Washington State by implementing a new real estate transfer tax on residential property sales that exceed specified price thresholds. This legislation introduces tiered excise tax rates based on the selling price of properties, with rates ranging from 0.20% for properties up to $500,000 to 0.60% for properties over $3 million. The bill also establishes dedicated accounts for funding housing initiatives, including a developmental disabilities housing and services account and a housing stability account, which will support operations and maintenance costs for low-income households. The revenue generated from these taxes will be allocated to various housing-related accounts to enhance the availability of affordable housing and reduce homelessness.

Additionally, the bill amends existing laws regarding the imposition of excise taxes by counties and cities, allowing counties that have already implemented a tax under RCW 82.46.035(2) to replace it with the new excise tax. It mandates that legislative authorities identify funded capital projects in their budgets and clarifies that county treasurers are not responsible for verifying property classifications on tax affidavits. The new tax is set to take effect on July 1, 2025, with adjustments to selling price thresholds every four years based on the consumer price index for shelter. The act is designed to provide government intervention in the housing market, particularly for low to middle-income households, and is officially titled the "Affordable Homes Act," set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 82.45.060, 43.330.181, 82.46.035