Affordable housing REET

AN ACT Relating to allowing counties or cities to impose a real 1
estate excise tax for the purpose of developing affordable housing, 2
subject to the will of the voters; and amending RCW 82.46.075.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.46.075 and 2002 c 343 s 1 are each amended to 5
read as follows: 6
(1) Subject to subsection ((s (4) and)) (5) of this section, the 7
legislative authority of any county may impose an additional excise 8
tax on the purchase and sale of real property in the county at the 9
rate of ((one-half of one )) 0.5 percent of the selling price. The 10
proceeds of the tax shall be used exclusively for the development of 11
affordable housing including acquisition, building, rehabilitation, 12
and maintenance and operation of housing for very low, low, and 13
moderate-income persons and those with special needs.14
(2) If a county has not imposed the excise tax under this section 15
by January 1, 2027, subject to subsection (5) of this section, the 16
legislative authority of a city within that county may impose an 17
excise tax on the purchase and sale of real property in the city at 18
the rate of 0.5 percent of the selling price. The proceeds of the tax 19
must be used exclusively for the development of affordable housing, 20
including acquisition, building, rehabilitation, and maintenance and 21
H-1168.1
HOUSE BILL 1867
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ramel, Lekanoff, Doglio, Duerr, Parshley, Reed,
Scott, Simmons, Macri, Fosse, Pollet, and Zahn
Read first time 02/06/25. Referred to Committee on Finance.
p. 1 HB 1867
operation of housing, for very low, low, and moderate-income persons 1
and those with special needs. 2
(3) Revenues generated from the tax imposed under this section 3
shall be placed in an affordable housing account administered by the 4
county or city . Disbursements from the account shall be made 5
following a competitive grant and loan process. The county or city 6
legislative authority shall determine a mechanism for receiving grant 7
and loan applications, and criteria by which the applications shall 8
be approved and funded. Eligible recipients of grants and loans from 9
the account shall be private nonprofit, affordable housing providers, 10
the housing authority for the county or city , or other housing 11
programs conducted or funded by a public agency, or by a public 12
agency in partnership with a private nonprofit entity.13
(((3))) (4) The taxes imposed under this section shall be imposed 14
in the same manner and on the same occurrences, and are subject to 15
the same conditions, as the taxes under chapter 82.45 RCW, except 16
that the tax shall be the obligation of both the purchaser and the 17
seller, as determined by the county or city legislative authority, 18
with at least ((one-half)) 0.5 of the obligation being that of the 19
purchaser. The county or city may enforce the obligation through an 20
action of debt against the purchaser or seller or may foreclose the 21
lien on the property in the same manner prescribed for the 22
foreclosure of mortgages. The imposition of the tax is effective 23
((thirty)) 30 days after the election at which the tax is authorized.24
(((4))) (5)(a) No tax may be imposed under this section unless 25
approved by a majority of the voters of the county or city voting, 26
for a specified period and for a specified maximum rate. This vote 27
must follow either: 28
(i) The adoption of a resolution by the county or city 29
legislative authority proposing this action; or 30
(ii) The filing of a petition proposing this action with the 31
county or city auditor, signed by county or city voters at least 32
equal in number to ((ten)) 10 percent of the total number of voters 33
in the county or city who voted in the preceding general election.34
(b) The ballot proposition shall be submitted to the voters of 35
the county or city at the next general election occurring at least 36
((sixty)) 60 days after a petition is filed, or at any special 37
election prior to this general election called for this purpose by 38
the county or city legislative authority. 39
p. 2 HB 1867
(((5) No tax may be imposed under this section unless the county 1
imposes a tax under RCW 82.46.070 at the maximum rate and the tax was 2
imposed by January 1, 2003.))3
(6) A plan for the expenditure of the proceeds of the tax imposed 4
by this section shall be prepared by the county or city legislative 5
authority at least ((sixty)) 60 days before the election if the 6
proposal is initiated by resolution of the county or city legislative 7
authority, or within six months after the tax has been authorized by 8
the voters if the proposal is initiated by petition. Prior to the 9
adoption of this plan, the elected officials of cities located within 10
the county shall be consulted and at least one public hearing shall 11
be held to obtain public comment. The proceeds of the tax shall be 12
expended in conformance with this plan. 13
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p. 3 HB 1867