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WashingtonHB 17912025-2026 Regular SessionHouseWALLET

Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.

Sponsored By: Dave Paul (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Local home-sale tax up to 0.5%

Beginning January 1, 2030, a city or county can charge a local real estate excise tax up to 0.25% of the sale price. It can also choose a higher option up to 0.5% instead of the lower rate. On a $500,000 sale, 0.25% is $1,250 and 0.5% is $2,500. Local budgets must show which capital projects this tax helps pay for and note it adds to other funds.

Tax now covers some company-ownership sales

Beginning July 27, 2025, the law treats some transfers of company ownership as a sale for the local real estate excise tax. A tax can apply when a controlling interest in a company that owns Washington property is transferred for value within any 36-month period. If the deal uses an option, the option’s signing date counts as the transfer date for timing. The Department of Revenue must set rules to add up related purchases by people acting together.

More ways cities can spend real-estate tax money

Cities and counties can use local real estate excise tax money for any purpose allowed under state law for that tax. They can also spend the greater of $100,000 or 35% of available funds on maintenance, operations, and services for existing projects, including services for people in affordable housing or shelters. The law spells out a wide list of capital projects these funds can build or fix, like roads, parks, libraries, police and fire facilities, flood control, and related technology. Local budgets must list which capital projects use this tax money and say it adds to other funds. A city or county cannot use these funds for operations and services if, after June 9, 2016, it passed certain listing or landlord requirements, unless those rules are specifically allowed by state or federal law or required disclosures.

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Sponsors & Cosponsors

Sponsor

  • Dave Paul

    Democratic • House

Cosponsors

  • Alex Ramel

    Democratic • House

  • Greg Nance

    Democratic • House

  • Larry Springer

    Democratic • House

  • Mari Leavitt

    Democratic • House

  • Sam Low

    Republican • House

  • Strom Peterson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 89 • No: 56

Senate vote • 4/15/2025

3rd Reading & Final Passage

Yes: 29 • No: 19 • Other: 1

House vote • 3/6/2025

3rd Reading & Final Passage

Yes: 60 • No: 37 • Other: 1

Actions Timeline

  1. Effective date 7/27/2025*.

    4/24/2025House

  2. Chapter 159, 2025 Laws.

    4/24/2025House

  3. Governor signed.

    4/24/2025legislature

  4. Delivered to Governor.

    4/21/2025legislature

  5. President signed.

    4/18/2025legislature

  6. Speaker signed.

    4/16/2025legislature

  7. Third reading, passed; yeas, 29; nays, 19; absent, 0; excused, 1.

    4/15/2025House

  8. Rules suspended. Placed on Third Reading.

    4/15/2025House

  9. Placed on second reading by Rules Committee.

    4/11/2025House

  10. Passed to Rules Committee for second reading.

    4/4/2025House

  11. Minority; without recommendation.

    4/3/2025House

  12. Minority; do not pass.

    4/3/2025House

  13. WM - Majority; do pass.

    4/3/2025House

  14. First reading, referred to Ways & Means.

    3/10/2025House

  15. Third reading, passed; yeas, 60; nays, 37; absent, 0; excused, 1.

    3/6/2025House

  16. Rules suspended. Placed on Third Reading.

    3/6/2025House

  17. 1st substitute bill substituted.

    3/6/2025House

  18. Rules Committee relieved of further consideration. Placed on second reading.

    3/4/2025House

  19. Referred to Rules 2 Review.

    2/28/2025House

  20. Minority; do not pass.

    2/26/2025House

  21. Minority; without recommendation.

    2/26/2025House

  22. FIN - Majority; 1st substitute bill be substituted, do pass.

    2/26/2025House

  23. FIN - Executive action taken by committee.

    2/26/2025House

  24. First reading, referred to Finance.

    2/3/2025House

  25. Introduced

    2/3/2025House

Bill Text

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