Chapter 3.25
PROPERTY EXCISE TAX

Sections:

Article I. One-Quarter-Percent Tax

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

3.25.020    Tax is obligation of seller.

3.25.030    Tax lien on real property.

3.25.040    County to collect payment.

3.25.050    Payment due.

3.25.060    Refunds.

3.25.070    Creation of special capital improvement fund.

3.25.080    Penalty.

3.25.090    Referendum.

Article II. Additional One-Quarter-Percent Tax

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

3.25.110    Tax is obligation of seller.

3.25.120    Tax lien on real property.

3.25.130    County to collect payment.

3.25.140    Payment due.

3.25.150    Refunds.

3.25.160    Creation of comprehensive plan capital improvement fund.

3.25.170    Penalty.

Article I. One-Quarter-Percent Tax

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

A. 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, 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).

B. Tax Rate. The rate of tax imposed by this section shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed.

C. Deposit into Special Capital Improvement Fund. All proceeds from the tax imposed by this section shall be placed by the city manager or authorized designee in the City’s special capital improvement fund established under KMC 3.25.090. [Ord. 98-0003 § 1.]

3.25.020 Tax is obligation of seller.

The taxes imposed by this article 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. Resort to one course of enforcement is not an election not to pursue the other. [Ord. 98-0003 § 2.]

3.25.030 Tax lien on real property.

The taxes imposed by this article and any interest or 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. Resort to one course of enforcement is not an election not to pursue the other. [Ord. 98-0003 § 3.]

3.25.040 County to collect payment.

The county treasurer shall collect the taxes imposed by this article as follows:

A. The county treasurer shall place one percent of the proceeds of the taxes imposed and collected by this article in the county’s current expense fund to defray costs of collection. The remaining proceeds from City taxes imposed by this article shall be distributed to the City monthly.

B. 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 article and may be recorded in the manner prescribed for recording satisfactions of mortgages.

C. 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. 98-0003 § 4.]

3.25.050 Payment due.

The tax imposed by this article 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. 98-0003 § 5.]

3.25.060 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. 98-0003 § 6.]

3.25.070 Creation of special capital improvement fund.

A. There is created a special fund to be known as the “special capital improvement fund,” into which shall be deposited all proceeds of the taxes imposed under KMC 3.25.010 (pursuant to RCW 82.46.010).

B. Revenues in the special capital improvement fund shall be used solely for financing capital projects as defined in RCW 82.46.010 (as the same exists or may hereafter be amended), as 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. 98-0003 § 7.]

3.25.080 Penalty.

It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this article. 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. 98-0003 § 8.]

3.25.090 Referendum.

A. Any referendum petition to repeal a county or City ordinance imposing a tax or altering the rate of the tax authorized under KMC 3.25.010 shall be filed with the city manager within seven days of passage of the ordinance codified in this article. Within 10 days, the city manager shall confer with the petitioner concerning form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure, which shall conform to RCW 82.46.021.

B. After this notification, the petitioner shall have 30 days in which to secure on petition forms the signatures of not less than 15 percent of the registered voters of the City, and to file the signed petitions with the filing officer. Each petition form shall contain the ballot title and the full text of the measure to be referred. The filing officer shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the filing officer shall submit the referendum measure to the City voters at an election, pursuant to RCW 82.46.021. [Ord. 98-0003 § 9.]

Article II. Additional One-Quarter-Percent Tax

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

A. Imposition. Pursuant to RCW 82.46.035, there is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW (as the same now exists or may hereafter be amended), and occurring within the corporate limits of the City. The tax imposed under this section shall be in addition to the real estate excise tax imposed by Article I of this chapter and 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 takes as imposed by the State under Chapters 82.45 and 82.46 RCW and Chapter 458-61 WAC (as the same now exists or may hereafter be amended).

B. Tax Rate. The rate of tax imposed by this section shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed by subsection (A) of this section.

C. Deposit into Comprehensive Plan Capital Improvement Fund. All proceeds from the tax imposed by this section shall be placed by the city manager or authorized designee in the City’s comprehensive plan capital improvement fund established under KMC 3.25.160. [Ord. 98-0004 § 1.]

3.25.110 Tax is obligation of seller.

The taxes imposed by this article 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. Resort to one course of enforcement is not an election not to pursue the other. [Ord. 98-0004 § 2.]

3.25.120 Tax lien on real property.

The taxes imposed by this article and any interest or 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. Resort to one course of enforcement is not an election not to pursue the other. [Ord. 98-0004 § 3.]

3.25.130 County to collect payment.

The county treasurer shall collect the taxes imposed by this article as follows:

A. The county treasurer shall place one percent of the proceeds of the taxes imposed and collected by this article in the county’s current expense fund to defray costs of collection. The remaining proceeds from City taxes imposed by this article shall be distributed to the City monthly.

B. 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 article and may be recorded in the manner prescribed for recording satisfactions of mortgages.

C. 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. 98-0004 § 4.]

3.25.140 Payment due.

The tax imposed by this article 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. 98-0004 § 5.]

3.25.150 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. 98-0004 § 6.]

3.25.160 Creation of comprehensive plan capital improvement fund.

A. There is created a special fund to be known as the “comprehensive plan capital improvement fund” into which shall be deposited all proceeds of the tax imposed under KMC 3.25.100 (pursuant to RCW 82.46.035).

B. Revenues in the comprehensive plan improvement fund shall be used exclusively for those purposes as referenced in RCW 82.46.035 (as the same now exists or may hereafter be amended). [Ord. 98-0004 § 7.]

3.25.170 Penalty.

It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this article. Any person violating any provision of this article shall be guilty of a misdemeanor and, upon conviction thereof, punished pursuant to State law or City ordinance. [Ord. 98-0004 § 8.]