Chapter 3.18
EXCISE TAX ON REAL ESTATE SALES

Sections:

3.18.010    Imposition of excise tax on real estate sales.

3.18.020    Taxable events.

3.18.030    Consistency with state tax.

3.18.040    Distribution of tax proceeds and limiting the use thereof.

3.18.050    Seller’s obligation.

3.18.060    Lien provisions.

3.18.070    Notation of payment.

3.18.080    Date payable.

3.18.090    Excessive and improper payments.

3.18.100    Severability.

3.18.010 Imposition of excise tax on real estate sales.

Effective on and after January 1, 1997, there is imposed a tax of one-half of one percent of the selling price on each sale of real property within the corporate limits of the City. (Ord. 1140 § 1, 1996; Ord. 770 § 1, 1985)

3.18.020 Taxable events.

Taxes imposed under this chapter shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and Chapter 458-61A WAC upon the occurrence of any taxable event within the corporate limits of the City. (Ord. 770 § 1, 1985)

3.18.030 Consistency with state tax.

The taxes imposed under this chapter 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 and Chapter 458-61A WAC. The provisions of those chapters, to the extent they are not inconsistent with this chapter, shall apply as though fully set forth herein. (Ord. 770 § 1, 1985)

3.18.040 Distribution of tax proceeds and limiting the use thereof.

A.    The county treasurer shall retain one percent of the proceeds of the tax imposed to defray costs of collection.

B.    The remaining proceeds from the tax imposed under this chapter shall be distributed to the City monthly and placed in the real estate excise capital improvement fund. One-half of the amount distributed to the City shall be accounted for separately and shall be used only for the purposes authorized by the City Council in the annual budget and in accordance with RCW 82.46.010(6). The other half of the amount distributed shall be used only for the purposes authorized by the City Council in the annual budget and in accordance with RCW 82.46.035(5). (Ord. 1140 § 2, 1996; Ord. 770 § 1, 1985)

3.18.050 Seller’s obligation.

The tax imposed under this chapter is 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. 770 § 1, 1985)

3.18.060 Lien provisions.

The tax imposed under this chapter and any interest or penalties thereon shall be a continuing lien upon each specific 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. Resort to one course of enforcement is not an election not to pursue the other. (Ord. 770 § 1, 1985)

3.18.070 Notation of payment.

The tax imposed under this chapter shall be paid to and collected by the county treasurer. The county treasurer shall act as agent for the City. The county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to the recording thereof 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 under this chapter shall be evidence of the satisfaction of the lien imposed by FMC 3.18.060 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 imposed under this chapter may be accepted by the county auditor for filing or recording until the tax is paid and the stamp affixed thereto; and, in any case where the tax imposed under this chapter 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. 770 § 1, 1985)

3.18.080 Date payable.

The tax imposed under this chapter 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 one percent per month from the time of sale until the date of payment. (Ord. 770 § 1, 1985)

3.18.090 Excessive and improper payments.

If, upon written application by the taxpayer to the county treasurer for a refund, it appears 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 of a miscalculation. Any refund made shall be withheld from the next monthly distribution to the City. (Ord. 770 § 1, 1985)

3.18.100 Severability.

The provisions of this chapter are declared to be severable. If any section, subsection, sentence, clause or phrase of this chapter or its application to any person or circumstance is for any reason held to be invalid or unconstitutional, the remainder of the chapter shall not as a result of said section, subsection, sentence, clause or phrase be held unconstitutional or invalid. (Ord. 770 § 1, 1985)