Bill > HB1867

This bill allows counties and cities to impose a real estate excise tax (REET) of up to 0.5 percent on property sales, specifically to fund affordable housing development, subject to voter approval. The tax can be implemented through either a county or city resolution or a petition signed by at least 10 percent of voters from the previous general election. If a city imposes the tax and the county subsequently does so, the county must provide a full tax credit to the city. The tax proceeds must be exclusively used for developing affordable housing, including acquisition, building, rehabilitation, and maintenance of housing for very low, low, and moderate-income persons and those with special needs. The revenues will be placed in an affordable housing account administered by the county or city, with disbursements made through a competitive grant and loan process. Eligible recipients include nonprofit housing providers, housing authorities, and public agencies working alone or in partnership. The tax becomes effective 30 days after voter approval, and both the purchaser and seller will be responsible for the tax. Before implementation, the county or city must prepare an expenditure plan and consult with local elected officials and hold a public hearing.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1867&Year=2025&Initiative=false