H-0078.5  _______________________________________________

                          HOUSE BILL 1415

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Kastama, Rockefeller, Stensen, O'Brien, Gombosky, Wood, Tokuda, Eickmeyer, Anderson, Murray, McIntire, Conway, Edwards, Lantz, Haigh, Sullivan, Romero, Lovick, D. Schmidt, Santos, Wolfe, Keiser, Kessler and Veloria

Read first time 01/25/1999.  Referred to Committee on Economic Development, Housing & Trade.

Creating a real estate excise tax exemption for first-time low-income home buyers.

    AN ACT Relating to real estate excise tax relief for first-time home buyers; amending RCW 82.45.060 and 82.45.180; adding a new section to chapter 82.45 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.45 RCW to read as follows:

    (1) At the time of closing of a sale of a residence to a low-income household first-time home buyer, the seller shall credit to the buyer ninety-two and three-tenths percent of the amount of tax that otherwise would be due under this chapter if the buyer has provided the seller with a signed affidavit and supporting documentation as to the buyer's status as a low-income household first-time home buyer.  The seller shall pay the remainder of the tax to the county treasurer as provided in this chapter.

    (2) The definitions in this subsection apply for the purposes of this section.

    (a) "First-time home buyer" and "low-income household" are defined as provided in RCW 43.185A.010.

    (b) "Residence" is defined as provided in RCW 84.36.383.

    Sec. 2.  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.  ((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.))

    Sec. 3.  RCW 82.45.180 and 1998 c 106 s 11 are each amended to read as follows:

    (1) For taxes collected by the county under this chapter, the county treasurer shall collect a two-dollar fee on all transactions required by this chapter where the transaction does not require the payment of tax.  A total of two dollars shall be collected in the form of a tax and fee, where the calculated tax payment is less than two dollars.  The county treasurer shall place one percent of the proceeds of the tax imposed by this chapter and the treasurer's fee in the county current expense fund to defray costs of collection and shall pay over to the state treasurer and account to the department of revenue for the remainder of the proceeds at the same time the county treasurer remits funds to the state under RCW 84.56.280, including a statement of the amount of tax that has been reduced under section 1 of this act.  The state treasurer shall deposit seven and seven-tenths percent of the proceeds of this tax in the public works assistance account created in RCW 43.155.050, except that if the tax has been reduced under section 1 of this act, the state treasurer shall deposit one hundred percent of the proceeds of this tax in the public works assistance account created in RCW 43.155.050.  The state treasurer shall deposit ((the)) any remaining proceeds in the general fund for the support of the common schools.

    (2) For taxes collected by the department of revenue under this chapter, the department shall remit the tax to the state treasurer who shall deposit the proceeds of any state tax ((in the general fund for the support of the common schools)) as provided in subsection (1) of this section.  The state treasurer shall deposit the proceeds of any local taxes imposed under chapter 82.46 RCW in the local real estate excise tax account hereby created in the state treasury.  Moneys in the local real estate excise tax account may be spent only for distribution to counties, cities, and towns imposing a tax under chapter 82.46 RCW.  Except as provided in RCW 43.08.190, all earnings of investments of balances in the local real estate excise tax account shall be credited to the local real estate excise tax account and distributed to the counties, cities, and towns monthly.  Monthly the state treasurer shall make distribution from the local real estate excise tax account to the counties, cities, and towns the amount of tax collected on behalf of each taxing authority.  The state treasurer shall make the distribution under this subsection without appropriation.

NEW SECTION. Sec. 4.  The deletion of former subsection (2) of RCW 82.45.060 by section 3 of this act is merely a deletion of outdated material and shall not be construed as affecting any existing right acquired or liability or obligation incurred under RCW 82.45.060 or under any rule or order adopted under RCW 82.45.060, nor as affecting any proceeding instituted under RCW 82.45.060.

NEW SECTION. Sec. 5.  This act takes effect August 1, 1999.

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