S-4019.1  _______________________________________________

 

                         SENATE BILL 6442

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Senators Franklin, Winsley, Loveland, Fairley, Prentice, Thibaudeau, Kohl, Kline, Snyder, Heavey, Schow, T. Sheldon, Patterson, Rasmussen, Goings, Hargrove, McAuliffe, Spanel and B. Sheldon

 

Read first time 01/19/98.  Referred to Committee on Financial Institutions, Insurance & Housing.

Providing tax incentives for creating low-cost housing.


    AN ACT Relating to low-cost housing for low-income buyers; adding new sections to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.45 RCW; and adding a new section to chapter 82.46 RCW.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) There is credited against the tax imposed under this chapter, for the benefit of the owner-seller at the time of sale, a fifty percent credit against the tax due from the sale of a newly constructed unit of low-cost housing to a low-income buyer.  The application for tax credits under this section shall be made in a form and manner prescribed by the department.

    (2) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) There is credited against the tax imposed under this chapter, twenty-five percent of the value donated for the provision in this state of low-cost housing to low-income buyers.  The donation must be made to a nonprofit organization that devotes a majority of its resources to housing construction.  The department shall make available to prospective donors a list of nonprofit organizations that qualify as nonprofit organizations devoting a majority of their resources to housing construction.

    (2) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 82.08 RCW to read as follows:

    (1) The tax levied by RCW 82.08.020 does not apply to sales of construction materials or charges made for labor and services used in the construction of a unit of low-cost housing, but only if the buyer provides the seller with an exemption certificate in a form and manner prescribe by the department by rule.

    (2) In making rules to implement this section the department shall require that the tax shall be immediately due and payable together with interest and penalties if the unit of low-cost housing being constructed is not sold to a low-income buyer by the seller who has claimed the exemption.

    (3) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 4.  A new section is added to chapter 82.12 RCW to read as follows:

    (1) The provisions of this chapter do not apply to the use of construction materials or labor and services used in the construction of a unit of low-cost housing, but only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department by rule.

    (2) In making rules to implement this section the department shall require that the tax shall be immediately due and payable together with interest and penalties if the unit of low-cost housing being constructed is not sold to a low-income buyer by the seller who has claimed the exemption.

    (3) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 5.  A new section is added to chapter 82.45 RCW to read as follows:

    (1) A tax imposed under this chapter does not apply to sales of low-cost housing to low-income buyers.

    (2) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 6.  A new section is added to chapter 82.46 RCW to read as follows:

    (1) A tax imposed under this chapter does not apply to sales of low-cost housing to low-income buyers.

    (2) For the purpose of this section:

    (a) "Low-cost housing" means housing that has a listed sales price of no more than two-thirds the mean sales price for homes in the county where the housing is located, adjusted annually.

    (b) "Low-income buyer" means a buyer who has an income of no more than eighty percent of the median family income, adjusted for household size, for the county or standard metropolitan statistical area where the house is located.

 

    NEW SECTION.  Sec. 7.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 


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