Bill > SB5647

This bill modifies the real estate excise tax (REET) law to provide a tax exemption for the sale of qualified affordable housing. Specifically, the bill creates an exemption for sales by an "affordable homeownership facilitator" (a nonprofit organization) of ownership housing to low-income households. The term "low-income" is defined as households with income not exceeding 80% of the median household income for the county where the dwelling is located. The bill clarifies that this housing does not include rental properties and is intended for ownership by low-income individuals and families. The bill also includes provisions for tracking the effectiveness of this tax preference, requiring the joint legislative audit and review committee to review the number of taxpayers claiming the exemption and the total amount of real estate excise tax revenue exempted. The tax preference is categorized as a measure intended to encourage certain behavior by taxpayers, specifically to promote the development of affordable homeownership housing. The exemption will expire on January 1, 2030, allowing the legislature to evaluate its impact and effectiveness over time.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5647&Year=2025&Initiative=false