BILL REQ. #:  H-3289.4 

Prefiled 1/4/2006. Read first time 01/09/2006.   Referred to Committee on Finance.

     AN ACT Relating to the support of military families stationed in Washington state through an exemption from the state and local real estate excise taxes for home sales resulting from military relocation orders within three years of home purchase; adding a new section to chapter 82.45 RCW; providing an effective date; and providing a contingent expiration 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) The sale of real property is exempt from tax under this chapter if the person claiming the exemption: (a) Occupied the property as a principal place of residence on the date military relocation orders were issued that require the seller, or seller's spouse, to relocate for continued active duty service; (b) purchased the residence within the three years preceding the date of issuance of the military relocation orders; (c) sold the property within the twelve months following the issuance of the military relocation orders; and (d) was an active duty member of the military on the date the property was sold, or the person's spouse was an active duty member on such date.
     (2)(a) When a real estate tax affidavit is submitted to the county treasurer and the affidavit specifies the exemption under this section, the treasurer may request to verify, or maintain copies of, documents required in accordance with (b) of this subsection.
     (b) The person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section including, but not limited to: (i) The permanent change of station orders, or other documentation substantiating military relocation orders; (ii) the instrument of sale or conveyance substantiating the seller's purchase of the residence within the three years preceding the date of issuance of the military relocation orders; (iii) documentation indicating active duty status in the military on the date the property was sold; (iv) the seller's Washington state driver's license and certificate of vehicle license registration, if the seller owns and operates a vehicle; and (v) the seller's voter registration card, or other documentation indicating that the seller is registered to vote in the state of Washington, if the seller is registered to vote.

NEW SECTION.  Sec. 2   This act takes effect July 1, 2006.

NEW SECTION.  Sec. 3   (1) This act expires on the first day of the month that is at least twenty days after the occurrence of either of the following:
     (a) Ten years from the effective date of this act has elapsed; or
     (b) The number of active duty members in all branches of the armed forces in Iraq is less than twenty thousand.
     (2) The department of revenue shall make the determination that this act has expired under subsection (1) of this section. After the department has made this determination, the department shall notify the county treasurers that the exemption is no longer available. To facilitate the determination under subsection (1)(b) of this section, the department may rely on its determination of the best available listing of United States forces deployed in Iraq. The department shall not modify or revoke a determination under this section.