County REET admin. fees

AN ACT Relating to county fees for administration of the real 1
estate excise tax; amending RCW 82.45.180; adding a new section to 2
chapter 36.33 RCW; adding a new section to chapter 36.40 RCW; 3
creating a new section; and providing an effective date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that the legislature 6
and the state rely on county assessors to timely and accurately value 7
taxable property and rely upon county treasurers to collect and 8
distribute property tax revenues. Both offices have a role in the 9
administration of property transactions. Therefore, the legislature 10
intends to create administrative assistance funds for county 11
assessors and treasurers and to increase REET fees from $5.00 to 12
$20.00 per transaction.13
Sec. 2. RCW 82.45.180 and 2013 c 251 s 11 are each amended to 14
read as follows: 15
(1)(a) For taxes collected by the county under this chapter, the 16
county treasurer shall collect a five dollar fee on all transactions 17
required by this chapter where the transaction does not require the 18
payment of tax. A total of five dollars shall be collected in the 19
form of a tax and fee, where the calculated tax payment is less than 20
H-0039.2
HOUSE BILL 1044
State of Washington 69th Legislature 2025 Regular Session
By Representative Wylie
Prefiled 12/11/24. Read first time 01/13/25. Referred to Committee
on Local Government.
p. 1 HB 1044
five dollars. ((Through June 30, 2006, the county treasurer shall 1
place one percent of the taxes collected by the county under this 2
chapter and the treasurer's fee in the county current expense fund to 3
defray costs of collection. After June 30, 2006, the )) The county 4
treasurer shall place one and three-tenths percent of the taxes 5
collected by the county under this chapter and the treasurer's fee in 6
the county current expense fund to defray costs of collection. ((For 7
taxes collected by the county under this chapter before July 1, 2006, 8
the county treasurer shall pay over to the state treasurer and 9
account to the department of revenue for the proceeds at the same 10
time the county treasurer remits funds to the state under RCW 11
84.56.280.)) For taxes collected by the county under this chapter 12
((after June 30, 2006 )), on a monthly basis the county treasurer 13
shall pay over to the state treasurer the month's transmittal. The 14
month's transmittal must be received by the state treasurer by 12:00 15
p.m. on the last working day of each month. The county treasurer 16
shall account to the department for the month's transmittal by the 17
((twentieth)) 20th day of the month following the month in which the 18
month's transmittal was paid over to the state treasurer. The state 19
treasurer shall deposit the proceeds in the general fund.20
(b) For purposes of this subsection, the definitions in this 21
subsection apply. 22
(i) "Close of business" means the time when the county treasurer 23
makes his or her daily deposit of proceeds. 24
(ii) "Month's transmittal" means all proceeds deposited by the 25
county through the close of business of the day that is two working 26
days before the last working day of the month. This definition of 27
"month's transmittal" shall not be construed as requiring any change 28
in a county's practices regarding the timing of its daily deposits of 29
proceeds. 30
(iii) "Proceeds" means moneys collected and receipted by the 31
county from the taxes imposed by this chapter, less the county's 32
share of the proceeds used to defray the county's costs of collection 33
allowable in (a) of this subsection. 34
(iv) "Working day" means a calendar day, except Saturdays, 35
Sundays, and all legal holidays as provided in RCW 1.16.050.36
(2) For taxes collected by the department of revenue under this 37
chapter, the department shall remit the tax to the state treasurer 38
who shall deposit the proceeds of any state tax in the general fund. 39
The state treasurer shall deposit the proceeds of any local taxes 40
p. 2 HB 1044
imposed under chapter 82.46 RCW in the local real estate excise tax 1
account hereby created in the state treasury. Moneys in the local 2
real estate excise tax account may be spent only for distribution to 3
counties, cities, and towns imposing a tax under chapter 82.46 RCW. 4
Except as provided in RCW 43.08.190, all earnings of investments of 5
balances in the local real estate excise tax account shall be 6
credited to the local real estate excise tax account and distributed 7
to the counties, cities, and towns monthly. Monthly the state 8
treasurer shall make distribution from the local real estate excise 9
tax account to the counties, cities, and towns the amount of tax 10
collected on behalf of each taxing authority. The state treasurer 11
shall make the distribution under this subsection without 12
appropriation. 13
(3)(a) ((Through June 30, 2010 )) Until the effective date of this 14
section, the county treasurer shall collect an additional five dollar 15
fee on all transactions required by this chapter, regardless of 16
whether the transaction requires the payment of tax. ((The county 17
treasurer shall remit this fee to the state treasurer at the same 18
time the county treasurer remits funds to the state under subsection 19
(1) of this section. The state treasurer shall place money from this 20
fee in the general fund. By the twentieth day of the subsequent 21
month, the state treasurer shall distribute to each county treasurer 22
according to the following formula: Three-quarters of the funds 23
available shall be equally distributed among the thirty-nine 24
counties; and the balance shall be ratably distributed among the 25
counties in direct proportion to their population as it relates to 26
the total state's population based on most recent statistics by the 27
office of financial management.28
(b) When received by the county treasurer, the funds shall be 29
placed in a special real estate excise tax electronic technology fund 30
held by the county treasurer to be used exclusively for the 31
development, implementation, and maintenance of an electronic 32
processing and reporting system for real estate excise tax 33
affidavits. Funds may be expended to make the system compatible with 34
the automated real estate excise tax system developed by the 35
department and compatible with the processes used in the offices of 36
the county assessor and county auditor. Any funds held in the account 37
that are not expended by the earlier of: July 1, 2015, or at such 38
time that the county treasurer is utilizing an electronic processing 39
and reporting system for real estate excise tax affidavits compatible 40
p. 3 HB 1044
with the department and compatible with the processes used in the 1
offices of the county assessor and county auditor, revert to the 2
special real estate and property tax administration assistance 3
account in accordance with subsection (5)(c) of this section.4
(4) Beginning July 1, 2010, through December 31, 2013, the county 5
treasurer shall continue to collect the additional five dollar fee in 6
subsection (3) of this section on all transactions required by this 7
chapter, regardless of whether the transaction requires the payment 8
of tax. During this period, the county treasurer shall remit this fee 9
to the state treasurer at the same time the county treasurer remits 10
funds to the state under subsection (1) of this section. The state 11
treasurer shall place money from this fee in the annual property 12
revaluation grant account created in RCW 84.41.170.13
(5)(a))) (b) The real estate and property tax administration 14
assistance account is created in the custody of the state treasurer. 15
An appropriation is not required for expenditures and the account is 16
not subject to allotment procedures under chapter 43.88 RCW.17
(((b) Beginning January 1, 2014, the county treasurer must 18
continue to collect the additional five dollar fee in subsection (3) 19
of this section on all transactions required by this chapter, 20
regardless of whether the transaction requires the payment of tax.))21
(c) The county treasurer shall deposit one-half of ((this)) the 22
fee in (a) of this subsection in the special real estate and property 23
tax administration assistance account in accordance with (((c))) (d) 24
of this subsection and remit the balance to the state treasurer at 25
the same time the county treasurer remits funds to the state under 26
subsection (1) of this section. The state treasurer must place money 27
from this fee in the real estate and property tax administration 28
assistance account. By the twentieth day of the subsequent month, the 29
state treasurer must distribute the funds to each county treasurer 30
according to the following formula: One-half of the funds available 31
must be equally distributed among the thirty-nine counties; and the 32
balance must be ratably distributed among the counties in direct 33
proportion to their population as it relates to the total state's 34
population based on most recent statistics by the office of financial 35
management. 36
(((c))) (d) When received by the county treasurer, the funds must 37
be placed in a special real estate and property tax administration 38
assistance account held by the county treasurer to be used for:39
p. 4 HB 1044
(i) Maintenance and operation of an annual revaluation system for 1
property tax valuation; and 2
(ii) Maintenance and operation of an electronic processing and 3
reporting system for real estate excise tax affidavits.4
(4)(a) Beginning the effective date of this section, the county 5
treasurer shall collect an additional $20 fee on all transactions 6
required by this chapter, regardless of whether the transaction 7
requires the payment of tax.8
(b)(i) The department shall adjust the fee in (a) of this 9
subsection to reflect growth of the consumer price index for shelter, 10
as defined in RCW 82.45.060. If the growth is equal to or less than 11
zero percent, the existing fee continues to apply.12
(ii) The department must publish an updated fee by September 1, 13
2029, and September 1st of every fourth year thereafter. The updated 14
fee will apply beginning January 1, 2030, and January 1st every 15
fourth year thereafter. Adjusted fees must be rounded to the nearest 16
10 cents.17
(iii) The most recent fee becomes the base for subsequent 18
adjustments.19
(c) Upon receipt of the fee in (a) of this subsection, the county 20
treasurer shall deposit:21
(i) 65 percent of the fee into the county's county assessor 22
administrative assistance fund established under section 3 of this 23
act; and24
(ii) 35 percent of the fee into the county's county treasurer 25
administrative assistance fund established under section 3 of this 26
act.27
NEW SECTION. Sec. 3. A new section is added to chapter 36.33 28
RCW to read as follows: 29
(1) Each county shall establish a county assessor administrative 30
assistance fund, held by the county treasurer. The fund must be used 31
only for the statutory obligations of the county assessor's office. 32
Only the county assessor may authorize expenditures from the fund, 33
and an appropriation is not required for expenditures.34
(2) Each county shall establish a county treasurer administrative 35
assistance fund, held by the county treasurer. The fund must be used 36
only for the statutory obligations of the county treasurer's office. 37
Only the county treasurer may authorize expenditures from the fund, 38
and an appropriation is not required for expenditures.39
p. 5 HB 1044
NEW SECTION. Sec. 4. A new section is added to chapter 36.40 1
RCW to read as follows: 2
The county assessor administrative assistance fund and county 3
treasurer administrative assistance fund, established under section 3 4
of this act, are not subject to appropriation or budgets by the 5
county legislative authority. 6
NEW SECTION. Sec. 5. This act takes effect September 1, 2025.7
--- END ---
p. 6 HB 1044