Airport projects/local REET

AN ACT Relating to the addition of airport capital projects as an 1
allowable use of local real estate excise tax revenues; and amending 2
RCW 82.46.010 and 82.46.035. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.46.010 and 2021 c 296 s 10 are each amended to 5
read as follows: 6
(1) The legislative authority of any county or city must identify 7
in the adopted budget the capital projects funded in whole or in part 8
from the proceeds of the tax authorized in this section, and must 9
indicate that such tax is intended to be in addition to other funds 10
that may be reasonably available for such capital projects.11
(2)(a) The legislative authority of any county or any city may 12
impose an excise tax on each sale of real property in the 13
unincorporated areas of the county for the county tax and in the 14
corporate limits of the city for the city tax at a rate not exceeding 15
((one-quarter of one )) 0.25 percent of the selling price. Except as 16
provided in subsection (8) of this section, the revenues from this 17
tax must be used by any city or county with a population of 5,000 or 18
less and any city or county that does not plan under RCW 36.70A.040 19
for any capital purpose identified in a capital improvements plan and 20
local capital improvements, including those listed in RCW 35.43.040.21
H-0550.1
HOUSE BILL 1650
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dent, Fey, Barkis, Bronoske, Eslick, Zahn, and
Graham
Read first time 01/28/25. Referred to Committee on Finance.
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(b) Except as provided in subsection (8) of this section, after 1
April 30, 1992, revenues generated from the tax imposed under this 2
subsection (2) in counties over 5,000 population and cities over 3
5,000 population that are required or choose to plan under RCW 4
36.70A.040 must be used solely for financing capital projects 5
specified in a capital facilities plan element of a comprehensive 6
plan and housing relocation assistance under RCW 59.18.440 and 7
59.18.450. However, revenues (i) pledged by such counties and cities 8
to debt retirement prior to April 30, 1992, may continue to be used 9
for that purpose until the original debt for which the revenues were 10
pledged is retired, or (ii) committed prior to April 30, 1992, by 11
such counties or cities to a project may continue to be used for that 12
purpose until the project is completed. 13
(3) In lieu of imposing the tax authorized in RCW 82.14.030(2), 14
the legislative authority of any county or any city may impose an 15
additional excise tax on each sale of real property in the 16
unincorporated areas of the county for the county tax and in the 17
corporate limits of the city for the city tax at a rate not exceeding 18
((one-half of one)) 0.5 percent of the selling price.19
(4) Taxes imposed under this section must be collected from 20
persons who are taxable by the state under chapter 82.45 RCW upon the 21
occurrence of any taxable event within the unincorporated areas of 22
the county or within the corporate limits of the city, as the case 23
may be. 24
(5) Taxes imposed under this section must comply with all 25
applicable rules, regulations, laws, and court decisions regarding 26
real estate excise taxes as imposed by the state under chapter 82.45 27
RCW. 28
(6) The definitions in this subsection (6) apply throughout this 29
section unless the context clearly requires otherwise.30
(a) "City" means any city or town. 31
(b) "Capital project" means those public works projects of a 32
local government for planning, acquisition, construction, 33
reconstruction, repair, replacement, rehabilitation, or improvement 34
of streets; roads; highways; sidewalks; street and road lighting 35
systems; traffic signals; bridges; domestic water systems; storm and 36
sanitary sewer systems; parks; recreational facilities; law 37
enforcement facilities; fire protection facilities; trails; 38
libraries; administrative facilities; judicial facilities; airports 39
with less than 10,000 annual enplanements as determined by the most 40
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recent enplanement data published by the federal aviation 1
administration; river flood control projects; waterway flood control 2
projects by those jurisdictions that, prior to June 11, 1992, have 3
expended funds derived from the tax authorized by this section for 4
such purposes; until December 31, 1995, housing projects for those 5
jurisdictions that, prior to June 11, 1992, have expended or 6
committed to expend funds derived from the tax authorized by this 7
section or the tax authorized by RCW 82.46.035 for such purposes; and 8
technology infrastructure that is integral to the capital project.9
(7) From July 22, 2011, until December 31, 2016, a city or county 10
may use the greater of $100,000 or 35 percent of available funds 11
under this section, but not to exceed $1,000,000 per year, for the 12
operations and maintenance of existing capital projects as defined in 13
subsection (6) of this section. 14
(8) After May 13, 2021, through December 31, 2023, a city or 15
county may use the greater of $100,000 or 35 percent of available 16
funds under this section for the operation of, maintenance of, and 17
service support for, existing capital projects, including the 18
provision of services to residents of affordable housing or shelter 19
units. 20
Sec. 2. RCW 82.46.035 and 2021 c 296 s 12 are each amended to 21
read as follows: 22
(1) Except for revenues used after May 13, 2021, through December 23
31, 2023, as provided in subsection (3) of this section, the 24
legislative authority of any county or city must identify in the 25
adopted budget the capital projects funded in whole or in part from 26
the proceeds of the tax authorized in this section, and must indicate 27
that such tax is intended to be in addition to other funds that may 28
be reasonably available for such capital projects.29
(2) The legislative authority of any county or any city that 30
plans under RCW 36.70A.040(1) may impose an additional excise tax on 31
each sale of real property in the unincorporated areas of the county 32
for the county tax and in the corporate limits of the city for the 33
city tax at a rate not exceeding ((one-quarter of one )) 0.25 percent 34
of the selling price. Any county choosing to plan under RCW 35
36.70A.040(2) and any city within such a county may only adopt an 36
ordinance imposing the excise tax authorized by this section if the 37
ordinance is first authorized by a proposition approved by a majority 38
of the voters of the taxing district voting on the proposition at a 39
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general election held within the district or at a special election 1
within the taxing district called by the district for the purpose of 2
submitting such proposition to the voters. 3
(3) Revenues generated from the tax imposed under subsection (2) 4
of this section must be used by such counties and cities solely for 5
financing capital projects specified in a capital facilities plan 6
element of a comprehensive plan, except that the greater of $100,000 7
or 35 percent of revenues may additionally be used for the operation 8
of, maintenance of, and service support for, existing capital 9
projects after May 13, 2021, through December 31, 2023. However, 10
revenues (a) pledged by such counties and cities to debt retirement 11
prior to March 1, 1992, may continue to be used for that purpose 12
until the original debt for which the revenues were pledged is 13
retired, or (b) committed prior to March 1, 1992, by such counties or 14
cities to a project may continue to be used for that purpose until 15
the project is completed. 16
(4) Revenues generated by the tax imposed by this section must be 17
deposited in a separate account after December 31, 2023.18
(5) As used in this section, "city" means any city or town and 19
"capital project" means those public works projects of a local 20
government for: 21
(a) Planning, acquisition, construction, reconstruction, repair, 22
replacement, rehabilitation, or improvement of streets, roads, 23
highways, sidewalks, street and road lighting systems, traffic 24
signals, bridges, domestic water systems, storm and sanitary sewer 25
systems; 26
(b) Planning, construction, reconstruction, repair, 27
rehabilitation, or improvement of parks; ((and))28
(c) Airports with less than 10,000 annual enplanements as 29
determined by the most recent enplanement data published by the 30
federal aviation administration; and31
(d) Until January 1, 2026, planning, acquisition, construction, 32
reconstruction, repair, replacement, rehabilitation, or improvement 33
of facilities for those experiencing homelessness and affordable 34
housing projects. 35
(6) A county or city may use the greater of $100,000 or 25 36
percent of available funds, but not to exceed $1,000,000, for capital 37
projects as defined in subsection (5)(((c))) (d) of this section. The 38
limits in this subsection do not apply to any county or city that 39
used revenue under this section for the acquisition, construction, 40
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improvement, or rehabilitation of facilities to provide housing for 1
the homeless prior to June 30, 2019. 2
(7) A county or city using funds for uses in subsection (5)3
(((c))) (d) of this section must document in its plan under RCW 4
36.70A.070(3) that it has funds during the next two years for capital 5
projects in subsection (5)(a) and (b) of this section.6
(8) When the governor files a notice of noncompliance under RCW 7
36.70A.340 with the secretary of state and the appropriate county or 8
city, the county or city's authority to impose the additional excise 9
tax under this section is temporarily rescinded until the governor 10
files a subsequent notice rescinding the notice of noncompliance.11
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