Affordable housing could get boost after lawmakers expand use of real estate excise tax

Legislation to give cities and counties the option to spend real estate excise taxes on affordable housing projects is close to final approval.

“It is one in many tools that we can use to address housing affordability and homelessness,” said the bill’s lead sponsor, Rep. Amy Walen, a Kirkland Democrat whose city has used the expanded authority to help develop a homeless shelter for women and families.

Since 2011, cities and counties have been able to charge a 0.25 percent real estate excise tax that property sellers pay. If cities and counties are required to use the state Growth Management Act — designed to regulate sprawl and protect environmentally-sensitive lands — they can levy an additional 0.25 percent, referred to as REET 2. The local taxes are on top of the state’s real estate excise tax, which has a 1.28 percent rate.

The law said cities and counties could use a chunk of the excise tax for capital projects, including streets, parks, traffic signals and stormwater and sanitary sewer systems.

https://www.msn.com/en-us/news/politics/james-drew-affordable-housing-could-get-boost-after-lawmakers-expand-use-of-real-estate-excise-tax/ar-BBVQPJW