READ FIRST TIME 04/19/05.   

     AN ACT Relating to real estate excise tax fees and electronic processing of affidavits; amending RCW 82.45.180; adding new sections to chapter 82.45 RCW; creating a new section; making an appropriation; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) It is the legislature's intent to provide funding for the development and implementation of an automated system for the electronic processing of the real estate excise tax. The legislature finds that due to the numerous users of the real estate excise tax information, and the many entities involved in its work flow, county systems must be compatible with the automated system developed by the state department of revenue.
     (2) The legislature finds that under current law an electronic real estate excise tax affidavit that is signed with a digital signature under chapter 19.34 RCW is a legally valid document and, pursuant to RCW 5.46.010, electronic facsimiles, scanned signatures, and digital and other electronic conversions of written signatures satisfy the signature component of the affidavit requirement under this act.

Sec. 2   RCW 82.45.180 and 1998 c 106 s 11 are each amended to read as follows:
     (1)(a) For taxes collected by the county under this chapter, the county treasurer shall collect a ((two-dollar)) five-dollar fee on all transactions required by this chapter where the transaction does not require the payment of tax. A total of ((two)) five dollars shall be collected in the form of a tax and fee, where the calculated tax payment is less than ((two)) five dollars. Through June 30, 2010, the county treasurer shall collect an additional five-dollar fee on all transactions required by this chapter where the transaction does not require the payment of a tax, and on all taxable transactions required by this chapter where the calculated tax payment is less than five dollars. This additional five-dollar fee shall be deposited in the county treasurer's real estate excise tax electronic technology account. Through June 30, 2006, the county treasurer shall place one percent of the ((proceeds of the tax imposed by)) taxes collected by the county under this chapter and the treasurer's fee in the county current expense fund to defray costs of collection ((and)). After June 30, 2006, the county treasurer shall place one and three-tenths percent of the taxes collected by the county under this chapter and the treasurer's fee in the county current expense fund to defray costs of collection. For taxes collected by the county under this chapter before July 1, 2006, the county treasurer 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. For taxes collected by the county under this chapter after June 30, 2006, on a monthly basis the county treasurer shall pay over to the state treasurer the month's transmittal. The month's transmittal must be received by the state treasurer by 5:00 p.m. on the last working day of each month. The county treasurer shall account to the department for the month's transmittal by the twentieth day of the month following the month in which the month's transmittal was paid over to the state treasurer. The state treasurer shall deposit the proceeds in the general fund for the support of the common schools.
     (b) For purposes of this subsection, the definitions in this subsection apply.
     (i) "Close of business" means the time when the county treasurer makes his or her daily deposit of proceeds.
     (ii) "Month's transmittal" means all proceeds deposited by the county through the close of business of the day that is two working days before the last working day of the month. This definition of "month's transmittal" shall not be construed as requiring any change in a county's practices regarding the timing of its daily deposits of proceeds.
     (iii) "Proceeds" means moneys collected and receipted by the county from the taxes imposed by this chapter, less the county's share of the proceeds used to defray the county's costs of collection allowable in (a) of this subsection.
     (iv) "Working day" means a calendar day, except Saturdays, Sundays, and all legal holidays as provided in RCW 1.16.050.
     (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. 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.
     (3)(a) The real estate excise tax electronic technology account is created in the custody of the state treasurer. An appropriation is not required for expenditures and the account is not subject to allotment procedures under chapter 43.88 RCW.
     (b) Through June 30, 2010, the county treasurer shall collect an additional five-dollar fee on all taxable transactions required by this chapter. The county treasurer shall remit this fee to the state treasurer at the same time the county treasurer remits funds to the state under subsection (1) of this section. The state treasurer shall place money from this fee in the real estate excise tax electronic technology account. By the twentieth day of the subsequent month, the state treasurer shall distribute to each county treasurer according to the following formula: Three-quarters of the funds available shall be equally distributed among the thirty-nine counties; and the balance shall be ratably distributed among the counties in direct proportion to their population as it relates to the total state's population based on most recent statistics by the office of financial management.
     (c) When received by the county treasurer, the funds shall be placed in a special real estate excise tax electronic technology fund held by the county treasurer to be used exclusively for the development, implementation, and maintenance of an electronic processing and reporting system for real estate excise tax affidavits. Funds may be expended to make the system compatible with the automated real estate excise tax system developed by the department and compatible with the processes used in the offices of the county assessor and county auditor. Any funds held in the account that are not expended by July 1, 2015, revert to the county capital improvements fund in accordance with RCW 82.46.010.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.45 RCW to read as follows:
     (1) The real estate excise tax grant account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for grants authorized under section 4 of this act in the manner provided for in section 4 of this act.
     (2) Any funds remaining in the real estate excise tax grant account on July 1, 2010, shall be deposited in the general fund.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.45 RCW to read as follows:
     (1) To the extent that funds are appropriated, the department shall administer a grant program for counties to assist in the development, implementation, and maintenance of an electronic processing and reporting system for real estate excise tax affidavits that is compatible with the automated real estate excise tax system developed by the department, and to assist in complying with the requirements of RCW 82.45.180(1).
     (2) Subject to the limit in subsection (3) of this section, the amount of the grant shall be equal to the amount paid by a county to:
     (a) Purchase computer hardware or software, or to repair or upgrade existing computer hardware or software, used for the electronic processing and reporting of real estate excise tax affidavits and that is compatible with the automated real estate excise tax system developed by the department; and
     (b) Make changes to existing software that are necessary to comply with the requirements of RCW 82.45.180(1).
     (3) No county is eligible for grants under this section totaling more than one hundred thousand dollars.
     (4) No more than three million nine hundred thousand dollars in grants may be awarded under this section.
     (5) The source of funds for this grant program is the real estate excise tax grant account created in section 3 of this act.

NEW SECTION.  Sec. 5   The sum of three million nine hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2006, from the general fund to the real estate excise tax grant account for the purposes of section 4 of this act.

NEW SECTION.  Sec. 6   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005.