Real estate excise taxes/GMA

AN ACT Relating to creating uniformity for the process by which 1
cities planning under the growth management act implement real estate 2
excise taxes; and reenacting and 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 2025 c 85 s 2 and 2025 c 159 s 5 are 5
each reenacted and amended to 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) The legislative authority of any county or any city that 12
plans under RCW 36.70A.040(((1))) may impose an additional excise tax 13
on each sale of real property in the unincorporated areas of the 14
county for the county tax and in the corporate limits of the city for 15
the city tax at a rate not exceeding 0.25 percent of the selling 16
price. ((Any county choosing to plan under RCW 36.70A.040(2) and any 17
city within such a county may only adopt an ordinance imposing the 18
excise tax authorized by this section if the ordinance is first 19
authorized by a proposition approved by a majority of the voters of 20
the taxing district voting on the proposition at a general election 21
H-2907.2
HOUSE BILL 2528
State of Washington 69th Legislature 2026 Regular Session
By Representatives Springer, Rude, McEntire, Doglio, Parshley, Chase,
Ramel, and Nance
Read first time 01/16/26. Referred to Committee on Finance.
p. 1 HB 2528
held within the district or at a special election within the taxing 1
district called by the district for the purpose of submitting such 2
proposition to the voters.))3
(3) Except as provided in subsection (5) of this section, 4
revenues generated from the tax imposed under subsection (2) of this 5
section must be used by such counties and cities solely for capital 6
projects specified in a capital facilities plan element of a 7
comprehensive plan. However, revenues (a) pledged by such counties 8
and cities to debt retirement prior to March 1, 1992, may continue to 9
be used for that purpose until the original debt for which the 10
revenues were pledged is retired, or (b) committed prior to March 1, 11
1992, by such counties or cities to a project may continue to be used 12
for that purpose until the project is completed. 13
(4) As used in this section, "city" means any city or town and 14
"capital project" means those public works projects or public 15
investments of a local government for: 16
(a) Planning, acquisition, construction, reconstruction, repair, 17
replacement, rehabilitation, or improvement of streets, roads, 18
highways, sidewalks, street and road lighting systems, traffic 19
signals, bridges, domestic water systems, storm and sanitary sewer 20
systems; 21
(b) Planning, construction, reconstruction, repair, 22
rehabilitation, or improvement of parks; 23
(c)(i) Planning, construction, reconstruction, repair, 24
rehabilitation, or improvement of either of the following categories 25
of airports: 26
(A) Airports included in the most recent Washington aviation 27
system plan published by the Washington department of transportation 28
aviation division; and 29
(B) Airports included in the national plan of integrated airport 30
systems with less than 10,000 annual enplanements as determined by 31
the most recent enplanement data published by the federal aviation 32
administration((.));33
(ii) "Capital project" does not include the installation or 34
improvement of fuel systems for the distribution of leaded fuel at an 35
airport as described in this subsection (4)(c); ((and))36
(d) Planning, acquisition, construction, reconstruction, repair, 37
replacement, rehabilitation, or improvement of facilities for those 38
experiencing homelessness and affordable housing projects; and39
(e) Any use allowed under RCW 82.46.010. 40
p. 2 HB 2528
(5) Revenues generated by the tax imposed under subsection (2) of 1
this section may be used towards planning, acquisition, construction, 2
reconstruction, repair, replacement, rehabilitation, or improvement 3
of facilities for those experiencing homelessness and affordable 4
housing projects that are supported through an interlocal housing 5
collaboration as established under chapter 39.34 RCW.6
(6) A county or city may use the greater of $100,000 or 25 7
percent of available funds for capital projects as defined in 8
subsection (4)(d) of this section. The limits in this subsection do 9
not apply to any county or city that used revenue under this section 10
for the acquisition, construction, improvement, or rehabilitation of 11
facilities to provide housing for the homeless prior to June 30, 12
2019. 13
(7) A county or city using funds for uses in subsection (4)(d) of 14
this section must document in its plan under RCW 36.70A.070(3) that 15
it has funds during the next two years for capital projects in 16
subsection (4)(a) and (b) of this section. 17
(8) When the governor files a notice of noncompliance under RCW 18
36.70A.340 with the secretary of state and the appropriate county or 19
city, the county or city's authority to impose the additional excise 20
tax under this section is temporarily rescinded until the governor 21
files a subsequent notice rescinding the notice of noncompliance.22
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p. 3 HB 2528