2SHB 1628 — Increasing the supply of affordable housing by modifying the state and local real estate excise tax.

What this bill does

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 beginning on January 1, 2024. 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.

From the Washington State Legislature's nonpartisan staff bill analysis. Read the full analysis ↗

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