Chapter 4.12
REAL ESTATE EXCISE TAX

Sections:

4.12.005    Real estate excise tax.

4.12.010    Creation and purpose.

4.12.012    Sources of resources.

4.12.013    Administration of fund.

4.12.015    Disposal of tax.

4.12.025    Lien.

4.12.035    Seller’s obligation.

4.12.045    Collection.

4.12.055    Severability.

4.12.005 Real estate excise tax.

(1) Pursuant to section 11, chapter 49, Laws of 1982, 1st ex. sess., as amended, there is hereby levied and shall be collected by the treasurer an excise tax on each sale of real property in the unincorporated areas of the county at the rate of one-quarter of one percent of the selling price.

(2) Pursuant to section 38, chapter 17, Laws of 1990, 1st ex. sess., there is hereby levied and shall be collected by the treasurer an additional excise tax on each sale of real property in the unincorporated areas of the county at the rate of one-quarter of one percent of the selling price.

(3) Taxes imposed under this section shall be collected from persons who are taxable by the state under chapter 82.45 RCW upon the occurrence of any taxable event within the unincorporated areas of the county.

(4) Taxes imposed under this section shall comply with all applicable rules, regulations, laws, and court decisions regarding real estate excise taxes as imposed by the state and be collectable as provided under chapter 82.45 RCW.

(Ord. 82-041 § 2, adopted May 6, 1982; Amended Ord. 90-094, June 20, 1990).

4.12.010 Creation and purpose.

There is hereby created a real estate excise tax fund (191), which shall be used to account for excise taxes on the sale of real property imposed in accordance with this chapter and chapter 82.45 RCW.

(Added by Ord. 07-141, Dec. 19, 2007, Eff date Jan. 1, 2008)

4.12.012 Sources of resources.

The real estate excise tax fund shall contain tax revenues received pursuant to SCC 4.12.005.

(Added by Ord. 07-141, Dec. 19, 2007, Eff date Jan. 1, 2008)

4.12.013 Administration of fund.

The director of the department of finance or his or her designee shall administer the real estate excise tax fund within the financial management system provided for in chapter 2.100 SCC, and shall serve as the fund manager. The fund manager shall have the duties set out in SCC 4.05.050.

(Added by Ord. 07-141, Dec. 19, 2007, Eff date Jan. 1, 2008)

4.12.015 Disposal of tax.

(1) The county treasurer shall place 1.3 percent of the proceeds of the taxes imposed under SCC 4.12.005 in the current expense fund to defray costs of collection.

(2) The remaining proceeds from the taxes imposed under SCC 4.12.005 shall be placed in separate accounts within the real estate excise tax fund created pursuant to this chapter or as required by chapter 4.13 SCC and used for the following purposes:

(a) Revenues generated from the tax imposed under SCC 4.12.005(1) shall be used by the county for local improvements, including those listed in RCW 35.43.040. After April 30, 1992, revenues shall be used solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan and housing relocation assistance under RCW 59.18.440 and 59.18.450. However, revenues pledged to debt retirement prior to April 30, 1992, shall continue to be used for that purpose until the original debt for which the revenues were pledged is retired, and revenues committed to a project prior to April 30, 1992, shall continue to be used for that purpose until the project is completed. As used in this subsection, "capital project" has the meaning given in RCW 82.46.010.

(b) Revenues generated from the tax imposed under SCC 4.12.005(2) shall be used by the county solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan. As used in this subsection "capital project" has the meaning given in RCW 82.46.035.

(3) Beginning with the preparation of the 2018 budget and annually thereafter, the selection of capital projects to be financed by the taxes imposed under SCC 4.12.005 shall be limited as follows:

(a) Total debt service to be paid in any year shall not exceed 50 percent of the total projected revenues of such taxes for that year;

(b) Up to 75 percent of projected tax revenues under SCC 4.12.005(1) or 4.12.005(2) may be used for debt service so long as the total to be paid in any year does not exceed the 50 percent limit imposed by subsection (3)(a) of this section; and

(c) The term for which a project may be financed shall not exceed the useful life of the project, provided that preference shall be given to a shorter term if the total debt service to be paid in any year will be close to the 50 percent limit imposed by subsection (3)(a) of this section.

(Ord. 82-041 § 2, adopted May 6, 1982; Amended Ord. 90-094, June 20, 1990; Ord. 05-131, Nov. 21, 2005, Eff date Dec. 18, 2005; Ord. 06-089, Nov. 20, 2006, Eff date Dec. 11, 2006; Ord. 07-123, Nov. 19, 2007, Eff date Dec. 17, 2007; Ord. 07-141, Dec. 19, 2007, Eff date Jan. 1, 2008; Ord. 09-123, Nov. 23, 2009, Eff Dec. 21, 2009; Amended by Ord. 10-094, Nov. 22, 2010, Eff date Dec. 20, 2010; Amended by Ord. 11-069, Nov. 21, 2011, Eff date Dec. 19, 2011; Amended by Ord. 12-090, Nov. 19, 2012, Eff date Dec. 10, 2012; Amended by Ord. 13-081, Nov. 25, 2013, Eff date Dec. 21, 2013; Amended by Ord. 14-094, Nov. 24, 2014, Eff date Dec. 20, 2014; Amended by Ord. 15-078, Nov. 23, 2015, Eff date Dec. 20, 2015; Amended by Ord. 16-092, Nov. 14, 2016, Eff date Dec. 8, 2016).

Reviser Note: Pursuant to Section 2. of Ordinance No. 06-089, the change to 1.3% in subsection (1) shall apply retroactively to and from July 1, 2006.

4.12.025 Lien.

Any tax imposed under SCC 4.12.005 and any interest and penalties thereon is a specific lien upon each piece of real property sold from the time of sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages.

(Ord. 82-041 § 2, adopted May 6, 1982).

4.12.035 Seller’s obligation.

The taxes levied under SCC 4.12.005 are an obligation of the seller and may be enforced through an action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other.

(Ord. 82-041 § 2, adopted May 6, 1982).

4.12.045 Collection.

Any taxes imposed under SCC 4.12.005 shall be paid to and collected by the county treasurer. The treasurer shall act as agent for any city within the county imposing a tax authorized by section 11(1), Engrossed Senate Bill No. 4972, Laws of 1982, ex. sess. The county treasurer shall also cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in case of used mobile home sales. Receipt issued by the county treasurer for payment of the tax imposed by SCC 4.12.005 shall be evidence of satisfaction of the lien imposed in SCC 4.12.025 and may be recorded in the manner prescribed for recording satisfaction of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax imposed by SCC 4.12.005 may be accepted by the county auditor for filing or recording until the tax is paid and a tax stamp affixed thereto; in case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the treasurer.

(Ord. 82-041 § 2, adopted May 6, 1982).

4.12.055 Severability.

If any portion of this chapter, its application to any person or circumstances is held invalid, the remainder of the act and the application of the provisions to other circumstances is not affected.

(Ord. 82-041 § 2, adopted May 6, 1982).