Despite an Historic $9.4-Billion Tax Increase in Washington – REALTORS® End Up Relatively Unscathed.
From increase in B&O Taxes, to Cap Gains, to Sales Tax on Services, to Excise Taxes, REALTORS® in Washington will NOT face key increases. Additionally, a statewide Call-to-Action on increasing property taxes (HB 2049) had the largest single response in our history. Also dropped, a “per mile” transportation tax and a real estate transfer tax.
Pro-Housing Bills
HB1096 Lot Splitting – a key bill for Spokane as this will allow for more density by splitting lots. Cannot increase the number of units.
HB 1403 Condo reform – reduces liability concerns for developers and construction requirements
HB 1516 Condo Insurance Reform – Sponsored by Spokane’s Rep. Natasha Hill, this bill commissions a study on how condominium defect liability can be modified to create more affordable options. Does not affect Spokane until 2027.
HB 1494 Improves and Updates Multi-Family Tax Exemption Programs. Signed into law
HB 1081 Establishing consumer protection for solicited real estate – Aims to limit financial institution home ownership, Signed into law
HB1715 Energy Performance Standards – committee to examine costs related to energy standards. Signed into law.
SB 5148 Ensuring compliance with the housing element requirements of the growth management act – helps cities do their part to create more housing
SB 5184 Reducing Parking Requirements – Limits parking to 0.5 parking space per housing unit and one space per 1000 square feet of commercial space
SB 5559 Unit Lot Subdivisions – Streamlines the subdivision process inside the urban growth boundaries
SB 5611 Streamlines and speeds up permitting process
SB 5471 Authorizes Middle Housing – Authorizes middle housing in unincorporated growth areas
SB 5298 Concerning the notice of sale or lease of manufactured/mobile home communities.
SB 5148 Ensuring compliance with the housing element requirements of the growth management act.
SB 5559 Unit Lot Subdivisions – streamlines regulations for smaller subdivisions within the GMA boundaries
SB 5611 Local Government Land Use Reforms – streamlines and clarifies local government permit workloads
SB 5587 Housing Supply Assessment – Funds the Washinbgton Center for Real Estate Research to investigate why housing development in counties is NOT closing the housing need gap.
Housing Issues of Concern
HB 1217 Rent Control – caps rent increases to 7% plus Inflation to a maximum of 10% per year. This bill may now hurt renters locally given our rental housing parity. Signed into law
HB 1491 – Transit Oriented Development – expands opportunities for housing near transit lines. Unfortunately, amendments added for low-income set asides make this unworkable by many building groups
HB 1081 Establishing consumer protection for solicited real estate – Aims to limit financial institution home ownership Signed into law.
Taxation Issues
HB 1044 Increases REET to $20 per transaction
FSHB 2081 – Increases the B and O Tax
FSHB 5794 – Tax Review
FSHB 5813 Capital Gains Increases
FFSHB 5814 Expands state’s excise tax code adding sales taxes to a wide range of categories, including advertising agencies, software development firms, IT support providers, and other digital service businesses. REALTORS not included.
SB 5813 Capital Gains – 7% for capital gains of asset sales over $270,000, and 9.9% for assets more than $1-million. Includes an Estate Tax on Real Estate (exemption for Washington family members)