AN ACT Relating to taxation of real estate transactions; amending RCW 82.45.060, 82.02.030, and 43.06.400; creating a new section; and repealing RCW 82.20.005, 82.20.010, 82.20.020, 82.20.030, 82.20.040, 82.20.050, 82.20.060, and 82.20.070.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 28A.45.060, chapter 223, Laws of 1969 ex. sess. as last amended by section 20, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.45.060 are each amended to read as follows:

((~~(1)~~)) There is imposed an excise tax upon each sale of real property at the rate of one and twenty-seven one-hundredths percent of the selling price. An amount equal to one-tenth percent of the selling price shall be deposited in the public works assistance account created in RCW 43.155.050.

((~~(2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.~~))

Sec. 2. Section 31, chapter 35, Laws of 1982 1st ex. sess. as last amended by section 5, chapter 296, Laws of 1986 and RCW 82.02.030 are each amended to read as follows:

(1) The rate of the additional taxes under RCW 54.28.020(2), 54.28.025(2), 66.24.210(2), 66.24.290(2), 82.04.2901, 82.16.020(2), 82.26.020(2), 82.27.020(5), 82.29A.030(2), and 82.44.020(5)((~~, and 82.45.060(2)~~)) shall be seven percent;

(2) The rate of the additional taxes under RCW 82.08.150(4) shall be fourteen percent; and

(3) The rate of the additional taxes under RCW 82.24.020(2) shall be fifteen percent.

Sec. 3. Section 60, chapter 3, Laws of 1983 2nd ex. sess. and RCW 43.06.400 are each amended to read as follows:

Beginning in January, 1984, and in January of every even-numbered year thereafter, the department of revenue shall submit to the legislature prior to the regular session a listing of the amount of reduction for the current and next biennium in the revenues of the state or the revenues of local government collected by the state as a result of tax exemptions. The listing shall include an estimate of the revenue lost from the tax exemption, the purpose of the tax exemption, the persons, organizations, or parts of the population which benefit from the tax exemption, and whether or not the tax exemption conflicts with another state program. The listing shall include but not be limited to the following revenue sources:

(1) Real and personal property tax exemptions under Title 84 RCW;

(2) Business and occupation tax exemptions, deductions, and credits under chapter 82.04 RCW;

(3) Retail sales and use tax exemptions under chapters 82.08, 82.12, and 82.14 RCW;

(4) Public utility tax exemptions and deductions under chapter 82.16 RCW;

(5) ((~~Conveyance tax exemptions under chapter 82.20 RCW;~~

~~(6)~~)) Food fish and shellfish tax exemptions under chapter 82.27 RCW;

((~~(7)~~)) (6) Leasehold excise tax exemptions under chapter 82.29A RCW;

((~~(8)~~)) (7) Motor vehicle and special fuel tax exemptions and refunds under chapters 82.36 and 82.38 RCW;

((~~(9)~~)) (8) Aircraft fuel tax exemptions under chapter 82.42 RCW;

((~~(10)~~)) (9) Motor vehicle excise tax exclusions under chapter 82.44 RCW; and

((~~(11)~~)) (10) Insurance premiums tax exemptions under chapter 48.14 RCW.

The department of revenue shall prepare the listing required by this section with the assistance of any other agencies or departments as may be required.

The department of revenue shall present the listing to the ways and means committees of each house in public hearings.

Beginning in January, 1984, and every four years thereafter the governor is requested to review the report from the department of revenue and may submit recommendations to the legislature with respect to the repeal or modification of any tax exemption. The ways and means committees of each house and the appropriate standing committee of each house shall hold public hearings and take appropriate action on the recommendations submitted by the governor.

As used in this section, "tax exemption" means an exemption, exclusion, or deduction from the base of a tax; a credit against a tax; a deferral of a tax; or a preferential tax rate.

NEW SECTION. Sec. 4. This act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the sections amended or repealed in this act or under any rule, regulation, or order adopted under those sections, nor as affecting any proceeding instituted under those sections.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) Section 82.20.005, chapter 15, Laws of 1961 and RCW 82.20.005;

(2) Section 82.20.010, chapter 15, Laws of 1961, section 7, chapter 35, Laws of 1982 1st ex. sess., section 14, chapter 3, Laws of 1983 2nd ex. sess., section 11, chapter 471, Laws of 1985 and RCW 82.20.010;

(3) Section 82.20.020, chapter 15, Laws of 1961, section 57, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.020;

(4) Section 82.20.030, chapter 15, Laws of 1961, section 58, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.030;

(5) Section 82.20.040, chapter 15, Laws of 1961, section 59, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.040;

(6) Section 82.20.050, chapter 15, Laws of 1961 and RCW 82.20.050;

(7) Section 82.20.060, chapter 15, Laws of 1961, section 60, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.060; and

(8) Section 82.20.070, chapter 15, Laws of 1961 and RCW 82.20.070.