Notice of Committee Passage of Senate Bill 5357

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SB 5357, titled AN ACT Relating to authorizing cities and counties to impose additional taxes for affordable housing, has been passed by the Senate Committee on Housing Stability & Affordability. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

This legislation results in no revenue impact to state revenues.

 

Under current law counties may impose an additional Real Estate Excise Tax (REET) at a rate of one-half of one percent if they also impose the local REET under RCW 82.46.070.

This legislation allows cities to also impose a REET for affordable housing.  Voter approval is required to levy the full rate of one-half of one percent.  A majority of the jurisdiction's legislative authority may impose a tax rate less than the full amount authorized under this section without voter approval. 

The requirement to levy the REET under RCW 82.46.070 is removed.

If both a city and county exercise the authority provided in this section, the city must collect the excise tax within its incorporated boundaries, and the county must collect the excise tax within the unincorporated areas.

At this time, San Juan County is the only county levying REET for affordable housing.  King County imposes the REET under 82.46.070 (acquisition and maintenance of conservation areas) and could impose the affordable housing REET.  

The local impact for this legislation is indeterminate.  The number of new jurisdictions that would impose the REET is unknown as well as the potential rates imposed.

The following legislators voted do pass:

Senator Jeannie Darneille
Democrat
(360) 786-7652
DARNEILL_JE@leg.wa.gov

Senator Patty Kuderer
Democrat
(360) 786-7694
Patty.Kuderer@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov


The following legislators voted to refer the bill without recommendation:

Senator Judy Warnick
Republican
(360) 786-7624
Judith.Warnick@leg.wa.gov


The following legislators voted do not pass:

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp