H-4911.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2615

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By House Committee on Capital Budget (originally sponsored by Representatives D. Sommers, Crouse, Fuhrman, Sterk, Sheahan and Pelesky)

Read first time 02/02/96.

Distributing a portion of real estate excise tax revenues to local governments for capital projects.

    AN ACT Relating to real estate excise taxes for local capital projects; amending RCW 82.45.060; creating a new section; and providing an expiration date.

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

    Sec. 1.  RCW 82.45.060 and 1987 c 472 s 14 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-eight one-hundredths percent of the selling price.

(2) An amount equal to seven and seven-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050.

    (((2) There is imposed an additional excise tax through June 30, 1989, upon each sale of real property at the rate of six one-hundredths of one percent of the selling price.  The tax imposed under this subsection shall be deposited in the conservation area account under RCW 79.71.110.))

NEW SECTION. Sec. 2.  The department of community, trade, and economic development shall conduct a study to identify the counties, cities, and other municipalities that impose impact fees and the amount of revenue collected or to be collected from impact fees.  The department shall then determine the percent of the excise tax in section 1 of this act that would generate an equivalent amount of revenue to the county, city, or municipality from impact fees.  The department shall also estimate the total annual expenditures by local governments for capital projects and the amount of local capital projects that are needed but not constructed due to insufficient revenues.  The department shall report the results of the study to the appropriate fiscal committee of the house of representatives and senate before December 1, 1996.  This section expires June 30, 1997.

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