Chapter 3.15
REAL ESTATE EXCISE TAX

Sections:

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

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

3.15.030    County to collect payment.

3.15.040    Tax is obligation of seller.

3.15.050    Tax lien on real property.

3.15.060    Duties of County Treasurer.

3.15.070    Payment due.

3.15.080    Refunds.

3.15.090    Real Estate Excise Tax First Quarter of One Percent Fund.

3.15.100    Real Estate Excise Tax Second Quarter of One Percent Fund.

3.15.110    Violation – Penalty.

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

(1) Imposition. Pursuant to RCW 82.46.010, there is imposed an excise tax on each sale of real property in the City constituting a taxable event as defined in Chapter 82.45 RCW, as the same now exists or may hereafter be amended. The tax imposed under this section shall be collected from persons who are taxable by the State under Chapter 82.45 RCW, as the same now exists or may hereafter be amended, and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate taxes as imposed by the State under Chapters 82.45 and 82.46 RCW, and Chapter 458-61 WAC, as the same now exist or may hereafter be amended.

(2) Tax Rate. The rate of tax imposed by this section pursuant to RCW 82.46.010, as the same exists or may hereafter be amended, shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed.

(3) Use of Proceeds. All revenues generated from the tax imposed by this section shall be placed by the City Manager or authorized designee into the City’s Real Estate Excise Tax First Quarter of One Percent Fund and shall be used solely for financing capital projects, as defined in RCW 82.46.010(6), as the same exists or may hereafter be amended, specified in the Capital Facilities Plan element of the City’s Comprehensive Plan or for housing relocation assistance under RCW 59.18.440 and 59.18.450. (Ord. 21-10 § 1; Ord. 26-05 § 1; Ord. 11-97 § 1)

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

(1) Imposition. Pursuant to RCW 82.46.035, there is imposed an additional 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. 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.

(2) Tax Rate. The rate of tax imposed by this section, pursuant to RCW 82.46.035, shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed by subsection (1) of this section.

(3) Use of Proceeds. Revenues generated from the tax imposed by this section shall be placed by the City Manager or authorized designee into the City’s Real Estate Excise Tax Second Quarter of One Percent Fund to be used solely for the financing of capital projects specified in the Capital Facilities Plan element of a Comprehensive Plan approved by the City Council. (Ord. 21-10 § 2; Ord. 26-05 § 2; Ord. 11-97 § 2)

3.15.030 County to collect payment.

The County Treasurer shall collect the taxes imposed by this chapter. The County Treasurer shall place one percent of the proceeds of the taxes imposed and collected by this chapter in the County’s 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. 11-97 § 3)

3.15.040 Tax is obligation of seller.

The taxes imposed by this chapter 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, without the necessity of an election of remedies. (Ord. 11-97 § 4)

3.15.050 Tax lien on real property.

The taxes imposed by this chapter and any interest or penalties thereon is a 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. 11-97 § 5)

3.15.060 Duties of County Treasurer.

The tax imposed by this chapter shall be paid to and collected by the County Treasurer. 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 by this chapter and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the King County Department of Records and Elections 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. 11-97 § 6)

3.15.070 Payment due.

The tax imposed by this chapter shall become due and payable immediately at the time of the sale, and if not so paid within 30 days thereafter, shall bear interest at the maximum rate permitted by law from the time of sale until the date of payment. (Ord. 11-97 § 7)

3.15.080 Refunds.

If, upon written application by a taxpayer to the County Treasurer for a refund, it appears that tax has been paid in excess of the amount actually due or upon and 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 miscalculation. Any refund made shall be withheld from the next monthly distribution to the City. (Ord. 11-97 § 8)

3.15.090 Real Estate Excise Tax First Quarter of One Percent Fund.

There is created a fund to be known as the “Real Estate Excise Tax First Quarter of One Percent Fund” into which shall be deposited all proceeds of the one quarter of one percent excise tax on real estate sales imposed pursuant to RCW 82.46.010. (Ord. 21-10 § 3)

3.15.100 Real Estate Excise Tax Second Quarter of One Percent Fund.

There is created a fund to be known as the “Real Estate Excise Tax Second Quarter of One Percent Fund” into which shall be deposited all proceeds of the tax imposed by RCW 82.46.035, as it now exists or may hereafter be amended. (Ord. 21-10 § 4)

3.15.110 Violation – Penalty.

It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this chapter. Any person violating any provision of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, punished pursuant to State law or City ordinance. (Ord. 11-97 § 11)