City & county REET revenues

AN ACT Relating to revenues from the excise tax on real estate 1
transactions imposed by cities and counties under RCW 82.46.035; and 2
amending RCW 82.46.035. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.46.035 and 2021 c 296 s 12 are each amended to 5
read as follows: 6
(1) Except for revenues used after May 13, 2021, through December 7
31, 2023, as provided in subsection (3) of this section, the 8
legislative authority of any county or city must identify in the 9
adopted budget the capital projects funded in whole or in part from 10
the proceeds of the tax authorized in this section, and must indicate 11
that such tax is intended to be in addition to other funds that may 12
be reasonably available for such capital projects.13
(2) The legislative authority of any county or any city that 14
plans under RCW 36.70A.040(1) may impose an additional excise tax on 15
each sale of real property in the unincorporated areas of the county 16
for the county tax and in the corporate limits of the city for the 17
city tax at a rate not exceeding ((one-quarter of one )) 0.25 percent 18
of the selling price. Any county choosing to plan under RCW 19
36.70A.040(2) and any city within such a county may only adopt an 20
ordinance imposing the excise tax authorized by this section if the 21
H-0849.1
HOUSE BILL 1694
State of Washington 69th Legislature 2025 Regular Session
By Representatives Thai, Zahn, Parshley, Street, Peterson, Duerr,
Kloba, Hill, Macri, and Ryu
Read first time 01/29/25. Referred to Committee on Finance.
p. 1 HB 1694
ordinance is first authorized by a proposition approved by a majority 1
of the voters of the taxing district voting on the proposition at a 2
general election held within the district or at a special election 3
within the taxing district called by the district for the purpose of 4
submitting such proposition to the voters. 5
(3) ((Revenues)) Except as provided for in subsection (6) of this 6
section, revenues generated from the tax imposed under subsection (2) 7
of this section must be used by such counties and cities solely for 8
financing capital projects specified in a capital facilities plan 9
element of a comprehensive plan, except that the greater of $100,000 10
or 35 percent of revenues may additionally be used for the operation 11
of, maintenance of, and service support for, existing capital 12
projects after May 13, 2021, through December 31, 2023. However, 13
revenues (a) pledged by such counties and cities to debt retirement 14
prior to March 1, 1992, may continue to be used for that purpose 15
until the original debt for which the revenues were pledged is 16
retired, or (b) committed prior to March 1, 1992, by such counties or 17
cities to a project may continue to be used for that purpose until 18
the project is completed. 19
(4) Revenues generated by the tax imposed by this section must be 20
deposited in a separate account after December 31, 2023.21
(5) As used in this section, "city" means any city or town and 22
"capital project" means those public works projects or public 23
investments of a local government for: 24
(a) Planning, acquisition, construction, reconstruction, repair, 25
replacement, rehabilitation, or improvement of streets, roads, 26
highways, sidewalks, street and road lighting systems, traffic 27
signals, bridges, domestic water systems, storm and sanitary sewer 28
systems; 29
(b) Planning, construction, reconstruction, repair, 30
rehabilitation, or improvement of parks; and 31
(c) ((Until January 1, 2026, planning )) Planning, acquisition, 32
construction, reconstruction, repair, replacement, rehabilitation, or 33
improvement of facilities for those experiencing homelessness and 34
affordable housing projects. 35
(6) Revenues generated by the tax imposed under subsection (2) of 36
this section may be used towards planning, acquisition, construction, 37
reconstruction, repair, replacement, rehabilitation, or improvement 38
of facilities for those experiencing homelessness and affordable 39
p. 2 HB 1694
housing projects that are supported through an interlocal housing 1
collaboration as established under chapter 39.34 RCW.2
(7) A county or city may use the greater of $100,000 or 25 3
percent of available funds, but not to exceed $1,000,000, annually 4
for capital projects as defined in subsection (5)(c) of this section. 5
The limits in this subsection do not apply to any county or city that 6
used revenue under this section for the acquisition, construction, 7
improvement, or rehabilitation of facilities to provide housing for 8
the homeless prior to June 30, 2019. 9
(((7))) (8) A county or city using funds for uses in subsection 10
(5)(c) of this section must document in its plan under RCW 11
36.70A.070(3) that it has funds during the next two years for capital 12
projects in subsection (5)(a) of this section. 13
(((8))) (9) When the governor files a notice of noncompliance 14
under RCW 36.70A.340 with the secretary of state and the appropriate 15
county or city, the county or city's authority to impose the 16
additional excise tax under this section is temporarily rescinded 17
until the governor files a subsequent notice rescinding the notice of 18
noncompliance. 19
--- END ---
p. 3 HB 1694