Chapter 3.06
EXCISE TAX ON REAL ESTATE SALES

Sections:

3.06.010    One-quarter percent excise tax on real estate sales.

3.06.015    Additional one-quarter percent excise tax on real estate sales.

3.06.020    County to collect payment.

3.06.030    Tax is obligation of seller.

3.06.040    Tax lien on real property.

3.06.050    Duties of County Treasurer.

3.06.060    Payment due.

3.06.070    Refunds.

3.06.080    Clerk to notify counties.

3.06.090    State law adopted by reference.

3.06.100    Fund created.

3.06.110    Street Improvement Fund No. 355 created.

Stat. Ref.: For provisions on real estate excise taxes, see Chapter 82.45 RCW.

3.06.010 One-quarter percent excise tax on real estate sales.

A. Imposition. There is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW and occurring within the corporate limits of the City of Issaquah. The tax imposed under this section shall be collected from persons who are taxable by the State under Chapter 82.45 RCW and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the State under Chapter 82.45 RCW.

B. Rate of Tax. The rate of tax imposed by IMC 3.06.010(A) shall be 1/4 of 1 percent of the selling price of all real property upon which this tax is imposed by subsection A.

C. Use of Proceeds. All proceeds from the tax imposed by this section shall be placed by the Finance Director in a capital improvement fund and shall be used primarily for financing capital projects specified in a capital facilities plan element of a comprehensive plan approved by the City Council and for other purposes as authorized by law; provided, however, revenues committed prior to July 1, 1991, to a capital project may continued to be used for that purpose until the project is completed. (Ord. 1887 § 1, 1991; Ord. 1594 § 1, 1983).

3.06.015 Additional one-quarter percent excise tax on real estate sales.

A. Pursuant to Section 38 of Chapter 17, Laws of 1990, First Extraordinary Session, there is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW and occurring within the corporate limits of the City of Issaquah. The tax imposed under this section shall be collected from persons who are taxable by the State under Chapter 82.45 RCW and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the State under Chapter 82.45 RCW.

B. Rate of Tax. The rate of tax imposed by IMC 3.06.015(A) shall be 1/4 of 1 percent of the selling price of all real property upon which this tax is imposed by subsection A.

C. Use of Proceeds. Revenues generated from the tax imposed by this section shall be used solely for the financing of capital projects specified in a capital facilities plan element of a comprehensive plan approved by the City Council. (Ord. 1887 § 2, 1991).

3.06.020 County to collect payment.

The County Treasurer shall place 1 percent of the proceeds of the taxes imposed by IMC 3.06.010 in the County current expense fund to defray costs of collection. The remaining proceeds from City taxes imposed by this chapter shall be distributed to the City monthly. (Ord. 1887 § 3, 1991; Ord. 1594 § 1, 1983).

3.06.030 Tax is obligation of seller.

The taxes imposed herein are the obligation of the seller and may be enforced through the action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. (Ord. 1594 § 1, 1983).

3.06.040 Tax lien on real property.

The taxes imposed herein and any interest or penalties thereon are the specific lien upon each piece of real property sold from the time of sale or until the tax is paid, which lien may be enforced 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. 1594 § 1, 1983).

3.06.050 Duties of County Treasurer.

The taxes imposed herein shall be paid to and collected by the Treasurer of the County within which is located the real property which was sold. The County Treasurer shall act as agent for the City within the County imposing the tax. The County Treasurer shall 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 the case of used mobile home sales. A receipt issued by the County Treasurer for the payment of the tax imposed herein shall be evidence of the satisfaction of the lien imposed in IMC 3.30.040 and may be recorded in the manner prescribed for recording satisfactions or mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the County Auditor for filing or recording until the tax is paid and the 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 County Treasurer. (Ord. 1594 § 1, 1983).

3.06.060 Payment due.

The tax imposed hereunder shall become due and payable immediately at the time of sale and, if not so paid within 30 days thereafter, shall bear interest at the rate of 1 percent per month from the time of sale until the date of payment. (Ord. 1594 § 1, 1983).

3.06.070 Refunds.

If, upon written application by a taxpayer to the County Treasurer for a refund, it appears a tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the County Treasurer to the taxpayer; provided, that no refund shall be made unless the state has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of a miscalculation. Any refund made shall be withheld from the next monthly distribution to the City. (Ord. 1594 § 1, 1983).

3.06.080 Clerk to notify counties.

The City Clerk is directed to transmit a certified copy of this chapter to the King County Department of Records immediately upon passage and further notifying that department of the effective date of this chapter. (Ord. 1594 § 1, 1983).

3.06.090 State law adopted by reference.

Chapter 82.45 RCW and any and all subsequent amendments to said statute are adopted by this reference as if set forth in full herein. The City Clerk is directed to maintain 1 copy of Chapter 82.45 RCW as currently enacted or as subsequently amended on file for public use and examination during regular City business hours. Copies of said statute shall be attached to the ordinance codified in this chapter and authenticated by the City Clerk. (Ord. 1594 § 1, 1983).

3.06.100 Fund created.

There is created a new fund called the “Capital Improvement Fund No. 301.” Moneys received by the city pursuant to the tax imposed by IMC 3.06.010 shall be placed in this fund and shall be expended as provided by law. (Ord. 1594 § 1, 1983).

3.06.110 Street Improvement Fund No. 355 created.

There is created a new fund called the Street Improvement Fund No. 355. Moneys received by the City pursuant to the tax imposed by IMC 3.06.015 shall be placed in this fund which shall be expended as provided by law. (Ord. 1887 § 4, 1991).