Referred to the House Local Government Committee on January 12, 2021
Substitute offered in the House on February 12, 2021
Authorizes counties and cities to establish a real estate excise tax density incentive zone within urban growth areas and provides for the distribution of real estate excise tax revenue with such incentive zone.
Referred to the House Finance Committee on February 15, 2021
Substitute offered in the House on March 22, 2021
Requires a city or county to consider: (1) the race and income of existing residents
within the area and the adjacent neighborhoods to be designated; and (2) the displacement impacts of low, very low, and extremely low-income residents within the area and the adjacent neighborhoods to be designated prior to establishing a real estate excise tax (REET) density incentive zone;
• requires a city or county to assess the need for anti-displacement policies for high-risk communities within designated areas and the adjacent neighborhoods, and make the assessment publicly available prior to establishing a REET density incentive zone;
• provides that the county or city, not the Department of Revenue, shall determine how dwelling units will be restricted from being short-term rentals;
• specifies that distance between a dwelling unit and a transit stop is to be measured by direct distance;
• provides that additional REET distributions to a city or county apply to subsequent sales of a qualified dwelling unit only if the requirements of the program continue to be met and that the county must revalidate compliance at each subsequent sale;
• requires counties to validate and identify sales of qualified dwelling units within a density incentive zone when submitting the REET affidavit to the Department of Revenue;
• specifies that state REET revenue distributed to a REET density incentive zone comes from the portion of state REET revenue that would have otherwise been deposited in the State General Fund; and
• provides that REET distributions made to a density incentive zone must be used solely for: implementation of the housing element in RCW 36.70A.070 as amended in House Bill 1220; costs for infrastructure, construction, and service support for moderate, low, very low, and extremely low-income housing; construction of capital facilities that promote livable and walkable neighborhoods, such as neighborhood- scale parks, trails, or other recreational amenities; or creation of certain permanently affordable homeownership.
Authorizes counties and cities to establish a real estate excise tax density incentive zone within urban growth areas and provides for the distribution of real estate excise tax revenue with such incentive zones.
Received in the Senate on March 30, 2021
Referred to the Senate Ways & Means Committee on March 30, 2021