Chapter 3.32
REAL ESTATE EXCISE TAX

Sections:

3.32.010    Imposed.

3.32.020    Applicability.

3.32.030    Consistency with state provisions.

3.32.040    Distribution.

3.32.050    Tax constitutes lien.

3.32.060    Seller’s obligation.

3.32.070    Notation of payment.

3.32.080    Date payable.

3.32.090    Excessive and improper payments.

3.32.100    Violation – Penalty.

3.32.010 Imposed.

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. 1360, Amended, 12/15/1992; Ord. 1067, Added, 05/06/1986)

3.32.020 Applicability.

Taxes imposed under 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. 1067, Added, 05/06/1986)

3.32.030 Consistency with state provisions.

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 herein.

(Ord. 1067, Added, 05/06/1986)

3.32.040 Distribution.

A.    Pursuant to RCW 82.46.030, 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.

B.    The remaining proceeds from city taxes imposed in this chapter shall be distributed to the city monthly, and those taxes imposed under TMC 3.32.010 shall be placed by the finance department in a municipal capital improvements fund. These capital improvement funds shall be used by the city solely for financing “capital projects” that are specified in the capital facilities plan element of the city’s comprehensive plan. For the purpose of this subsection, “capital project” means public works projects for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, parks, recreational facilities, law enforcement facilities, fire protection facilities, trails, libraries, administrative and/or judicial facilities, and further as RCW 82.46.030 shall be further amended.

C.    This section shall not limit the existing authority of the city to impose special assessments on property benefited thereby in the manner prescribed by law.

(Ord. O96-027, Amended, 10/15/1996; Ord. 1360, Amended, 12/15/1992; Ord. 1067, Added, 05/06/1986)

3.32.050 Tax constitutes lien.

The taxes imposed in this chapter and any interest or penalties thereon are 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.

(Ord. 1067, Added, 05/06/1986)

3.32.060 Seller’s obligation.

The taxes imposed in this chapter are the obligation of the seller and may be enforced through an 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. 1067, Added, 05/06/1986)

3.32.070 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 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 in this chapter shall be evidence of the satisfaction of the lien imposed in TMC 3.32.050 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. 1067, Added, 05/06/1986)

3.32.080 Date payable.

The tax imposed in this chapter shall become due and payable immediately at the time of sale, and if not so paid within thirty days thereafter, shall bear interest at the rate of one percent per month from the time of sale until the date of payment.

(Ord. 1067, Added, 05/06/1986)

3.32.090 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 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. 1067, Added, 05/06/1986)

3.32.100 Violation – Penalty.

Any seller who fails or refuses to pay the tax as required shall be guilty of a misdemeanor.

(Ord. O2011-007, Amended, 07/19/2011; Ord. 1067, Added, 05/06/1986)