Chapter 3.62
REAL ESTATE EXCISE TAX
Sections:
Article I. Real Estate Excise Tax
3.62.030 Consistency with state tax.
3.62.040 Distribution of tax proceeds and limiting the use thereof.
3.62.090 Excessive and improper payments.
Article II. Additional Real Estate Excise Tax
3.62.110 Imposition of real estate excise tax.
3.62.130 Consistency with state tax.
3.62.140 Distribution of tax proceeds and limiting the use thereof.
3.62.190 Excessive and improper payments.
3.62.210 Definition of capital project.
Article I. Real Estate Excise Tax
3.62.010 Imposition.
There is imposed a tax of one-quarter of one percent of the selling price on each sale of real property within the corporate limits of this city. (Ord. 613 § 1, 1982).
3.62.020 Taxable events.
Taxes imposed by this chapter shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and Chapter 458-61 WAC upon the occurrence of any taxable event within the corporate limits of the city. (Ord. 613 § 2, 1982).
3.62.030 Consistency with state tax.
The taxes imposed in 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 458-61 WAC. The provisions of those chapters to the extent they are not inconsistent with this chapter shall apply as though fully set forth in this chapter. (Ord. 613 § 3, 1982).
3.62.040 Distribution of tax proceeds and limiting the use thereof.
(1) The county treasurer shall place one percent of the proceeds of the taxes imposed herein in the county current expense fund to defray costs of collection.
(2) The remaining proceeds from city taxes imposed herein shall be distributed to the city monthly and those taxes imposed under OHMC 3.62.010 shall be placed by the city treasurer in a municipal capital improvements fund. These capital improvement funds shall be used by the city as authorized by RCW 82.46.010, as now or hereafter amended.
(3) This section shall not limit the existing authority of this city to impose special assessments on property specially benefited thereby in the manner prescribed by law. (Ord. 1648 § 1, 2012; Ord. 950 § 1, 1993; Ord. 613 § 4, 1982).
3.62.050 Seller’s obligation.
The taxes imposed in 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. (Ord. 613 § 5, 1982).
3.62.060 Lien provisions.
The taxes imposed in this chapter 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. 613 § 6, 1982).
3.62.070 Notation of payment.
The taxes imposed in this chapter 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 tax affidavit in the case of used mobile home sales. A receipt issued by the county treasurer for the payment of the tax imposed in this chapter shall be evidence of the satisfaction of the lien imposed in OHMC 3.62.060 and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale of 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. 613 § 7, 1982).
3.62.080 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. 613 § 8, 1982).
3.62.090 Excessive and improper payments.
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 Island 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. 613 § 9, 1982).
Article II. Additional Real Estate Excise Tax1
3.62.110 Imposition of real estate excise tax.
Because the city is mandated to plan under RCW 36.70A.040(1) and pursuant to RCW 82.46.035, as now in effect or hereafter amended, there is imposed an additional tax of one-quarter of one percent of the selling price on each sale of real property within the corporate limits of this city. (Ord. 1053 § 2, 1996).
3.62.120 Taxable events.
Taxes imposed by this chapter shall be collected from persons who are taxable by the state under Chapter 82.45 RCW, as now in effect or hereafter amended, and Chapter 458-61 WAC, as now in effect or hereafter amended, upon the occurrence of any taxable event within the corporate limits of the city. (Ord. 1053 § 3, 1996).
3.62.130 Consistency with state tax.
The taxes imposed in 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, as now in effect or hereafter amended, and Chapter 458-61 WAC, as now in effect or hereafter amended. The provisions of those chapters to the extent they are not inconsistent with this chapter shall apply as though fully set forth in this chapter. (Ord. 1053 § 4, 1996).
3.62.140 Distribution of tax proceeds and limiting the use thereof.
(1) The county treasurer shall place one percent of the proceeds of the taxes imposed in this chapter in the county current expense fund to defray costs of collection.
(2) The remaining proceeds from city taxes imposed in this chapter shall be distributed to the city monthly, and those taxes imposed under OHMC 3.62.110 shall be placed by the city treasurer in a municipal capital improvements fund.
(3) Proceeds from this additional tax shall be deposited in a separate account in the municipal capital improvements fund and expended as authorized by law under RCW 82.46.035.
(4) This section shall not limit the existing authority of this city to impose special assessments on property specially benefited thereby in the manner prescribed by law. (Ord. 1649 § 1, 2012; Ord. 1053 § 5, 1996).
3.62.150 Seller’s obligation.
The taxes imposed in 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. (Ord. 1053 § 6, 1996).
3.62.160 Lien provisions.
The taxes imposed in this chapter 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. 1053 § 7, 1996).
3.62.170 Notation of payment.
The taxes imposed in this chapter 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 tax affidavit in the case of used mobile home sales. A receipt issued by the county treasurer for the payment of the tax imposed in this chapter shall be evidence of the satisfaction of the lien imposed in OHMC 3.62.160 and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale of 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. 1053 § 8, 1996).
3.62.180 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. 1053 § 9, 1996).
3.62.190 Excessive and improper payments.
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 Island 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. 1053 § 10, 1996).
3.62.200 Separate account.
Revenues generated by the tax imposed by this section shall be deposited in a separate account. (Ord. 1053 § 11, 1996).
3.62.210 Definition of capital project.
“Capital project” means those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. (Ord. 1053 § 12, 1996).
Code reviser’s note: Ord. 1053 added provisions on the additional real estate excise tax as a new chapter 3.63. These provisions have been editorially renumbered to be a part of this chapter to avoid duplicate section numbering.