The proposed "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 certain price thresholds. This bill introduces a tiered excise tax structure for real estate transactions, with rates varying based on the selling price, and establishes dedicated accounts for developmental disabilities housing, affordable housing operations, and housing stability. The revenue generated from these taxes will be allocated to support low-income households and individuals with developmental disabilities, reflecting a commitment to increasing affordable housing supply and reducing homelessness.

Key changes include the introduction of a new excise tax structure effective July 1, 2025, with rates ranging from 0.20% for properties up to $500,000 to 0.60% for properties over $3 million. The bill also allows counties and cities to replace existing excise taxes with this new structure and mandates that tax revenues be used solely for financing capital projects and housing-related services. Additionally, the selling price thresholds for these taxes will be adjusted every four years based on the consumer price index for shelter. The act is set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 82.45.060, 43.330.181, 82.46.035