The bill proposes a real estate excise tax exemption for the sale of qualified affordable housing in Washington State, specifically targeting low-income housing developments and transfers involving entities that support individuals with developmental disabilities. It amends RCW 82.45.010 to introduce new definitions, including replacing "self-help" housing with "ownership" to emphasize that the housing must be for ownership by low-income individuals and families. The bill outlines conditions for these exemptions, such as the requirement for continued use of the property for low-income housing and compliance with specific tax exemption criteria. If these conditions are not met, the tax that would have been due at the time of transfer must be paid, along with interest.

Additionally, the bill defines "nonprofit organization" as an entity exempt from taxation under section 501(c)(3) of the Internal Revenue Code and introduces the term "qualified space" for portions of affordable housing developments accessible to tenants or the public. It establishes a tax preference performance statement to encourage ownership housing development and mandates the joint legislative audit and review committee to evaluate the effectiveness of this tax preference. The bill also specifies that the provisions will expire on January 1, 2030, and requires data collection by the Washington State Housing Finance Commission to assess the fiscal impact and effectiveness of the exemptions.

Statutes affected:
Original bill: 82.45.010