HB 1628 Increasing the supply of affordable housing by modifying the state and local real estate...

HB 1628

Increasing the supply of Affordable Housing by Modifying the State and Local Real Estate Excise Tax. 

Bill Summary

• The portion of the selling price up to
  • $525,000 is taxed at 1.1 percent
  • $525,000 but less than or equal to $1,525,000 is taxed at 1.28 percent
  • $1,525,000 but less than $3,025,000 is taxed at 2.75 percent
  • over $3,025,000 is taxed at 3 percent.
• Adds a new state real estate excise tax threshold of $5,000,000 on January 1, 2025, with the portion of the selling price that is above the threshold taxed at a rate of 4 percent.
• Provides for the distribution of the increase in revenue from the new threshold over what would have been collected had the new threshold not been imposed, including to a newly created Developmental Disabilities Trust Account that can be used for housing support for individuals with developmental disabilities.
• Allows a county or city to impose an additional 0.25 percent real estate excise tax for the construction and support of affordable housing.
• Removes the expiration date on the ability to use certain local government real estate excise tax funds for facilities for those experiencing homelessness or for affordable housing, and removes a $1,000,000 limit on the annual use of such funds in larger jurisdictions.
• Creates a real estate excise tax exemption for certain sales or transfers of properties that qualify for a property tax exemption that will be used for a community purpose. 
• The REET Tax would be 4% of the selling price that is greater than $5 million, beginning January 1, 2025.
• The REET Tax shall be split as follows:
  • 30% to the Washington housing trust fund created in RCW 43.185.030;
  • 30% to the apple health and homes account created in RCW 43.330.184;
  • 15% to the developmental disabilities trust account created in the bill
  • 24% to the affordable housing for all account created in RCW 43.185C.190 for operations, maintenance, and service cost for permanent supportive housing as defined in RCW 17 36.70A.030.

• Jan 26 First reading, referred to Local Government. (View Original Bill)
• Feb 7 Public hearing in the House Committee on Local Government at 10:30 AM. (Committee Materials)
• Feb 8 Public hearing in the House Committee on Local Government at 8:00 AM. (Committee Materials)
• Feb 10 Scheduled for executive session in the House Committee on Local Government at 10:30 AM (Subject to change). (Committee Materials)
  LG - Majority; 1st substitute bill be substituted, do pass. (View 1st Substitute) (Majority Report)
  Minority; do not pass. (Minority Report)
• Feb 14 Referred to Finance.
• Feb 21 Public hearing in the House Committee on Finance at 8:00 AM. (Committee Materials)