The bill modifies existing laws in Washington State concerning the funding and allocation of sales and use taxes for affordable housing and related services. It amends sections of the Revised Code of Washington (RCW) to clarify tax rates, now capped at 0.1 percent, and mandates that at least 60 percent of collected funds be allocated for constructing or acquiring affordable housing and behavioral health facilities. The bill also allows counties and cities to pool tax receipts through interlocal agreements and sets guidelines for fund usage, including limitations on administrative costs and annual reporting requirements. The tax is set to expire 20 years after its initial imposition, aiming to enhance affordable housing provisions for vulnerable populations.

Additionally, the bill addresses the real estate excise tax, introducing exemptions for specific property transfers related to low-income housing and individuals with developmental disabilities. It specifies conditions under which these transfers can qualify for tax exemptions and establishes a timeline for qualifying grantees to maintain their tax-exempt status. The Washington State Housing Finance Commission is tasked with collecting data on the fiscal impacts of these exemptions and conducting a review by 2033. The bill aims to facilitate affordable housing initiatives while ensuring compliance with tax regulations and the continued use of properties for their intended purposes.

Statutes affected:
Original bill: 82.14.530, 82.14.540, 82.45.010