Bill > HB1694

This bill amends the existing law regarding the excise tax on real estate transactions imposed by cities and counties, clarifying and expanding provisions related to how these tax revenues can be used. Specifically, the bill modifies the rate of the tax (which remains at 0.25 percent), and provides more detailed guidance on the use of these revenues. The bill allows counties and cities to use the tax revenues for capital projects, with a particular focus on infrastructure (such as roads, bridges, and utility systems), parks, and facilities for people experiencing homelessness and affordable housing projects. The legislation introduces a new provision allowing revenues to be used for homelessness and housing projects through interlocal housing collaborations. The bill also establishes that counties and cities can use up to $1,000,000 annually (or the greater of $100,000 or 25 percent of available funds) for homeless and affordable housing projects. Additionally, the bill includes a mechanism that temporarily rescinds a jurisdiction's ability to impose this tax if they are found to be non-compliant with certain planning requirements, providing an enforcement mechanism to ensure proper use of the tax revenues.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1694&Year=2025&Initiative=false