Chapter 3.34
EXCISE TAX ON REAL ESTATE SALES
Sections:
3.34.010 Imposition of the Real Estate Excise Tax
3.34.030 Consistency with State Tax
3.34.040 Distribution of Tax Proceeds and Limiting the Use Thereof
3.34.050 Repealed
3.34.110 Excessive and Improper Payments
3.34.010 Imposition of the Real Estate Excise Tax.
(a) Real Estate Excise Tax I (REET I). In lieu of imposing the tax authorized by RCW 82.14.030(2), there is hereby imposed a tax of one-quarter of one percent of the selling price of each sale of real property within the corporate limits of this City.
(b) Real Estate Excise Tax II (REET II). In lieu of imposing the tax authorized by RCW 82.14.030(2), there is hereby imposed an additional tax of one-quarter of one percent of the selling price of each sale of real property within the corporate limits of this City as authorized in ESHB 2929/RCW 82.46.010(3). (Ord. 827, Sec. 1, 2010; Ord. 358, Sec. 1, 1990; Ord. 221, Sec. 1, 1982)
3.34.020 Taxable Events.
Taxes imposed herein 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 this City. (Ord. 358, Sec. 2, 1990; Ord. 221, Sec. 2, 1982)
3.34.030 Consistency with State Tax.
The taxes imposed herein 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 these Chapters, to the extent that they are not inconsistent with this Ordinance, shall apply as though fully set forth herein. (Ord. 358, Sec. 3, 1990; Ord. 221, Sec. 3, 1982)
3.34.040 Distribution of Tax Proceeds and Limiting the Use Thereof.
(a) The County Treasurer shall place the legally mandated percentage of proceeds of the taxes imposed herein in the county current expense fund to defray costs of collection.
(b) The remaining proceeds from City taxes imposed herein shall be distributed to the City monthly and those taxes imposed under Section 3.34.010 shall be placed by the City Treasurer in the municipal capital improvement funds with uses to be limited as follows:
(1) REET I capital improvement funds shall be used by the City solely for financing capital projects as defined by RCW 82.46.010(6) that are specified in a capital facilities plan element of a comprehensive plan.
(2) REET II capital improvement funds shall be used by the City solely for financing capital projects as defined by RCW 82.46.035(5) that are specified in a capital facilities plan element of a comprehensive plan.
(c) This section shall not limit the existing authority of this City to impose special assessments on property benefited thereby in the manner prescribed by law. (Ord. 827, Sec. 2, 2010; Ord. 358, Sec. 4, 1990; Ord. 221, Sec. 4, 1982)
3.34.050 City Use.
Repealed by Ord. 827. (Ord. 221, Sec. 5, 1982)
3.34.060 Special Initiative.
The ordinance codified in this chapter shall be subject to a special initiative (referendum process), for a 30-day period commencing at the time of final passage. The number of registered voters needed to sign a petition for special initiative shall be 15 percent of the total number of names of persons listed as registered voters within the City on the day of the last preceding municipal general election. If a special initiative petition is filed with the City Council, the operation of this chapter shall be suspended until the special initiative petition is found insufficient or until this chapter receives a favorable majority vote by the voters. Procedures for referendum upon petition contained in RCW 35A.11.100 shall apply to any such special initiative petition. (Ord. 358, Sec. 5, 1990; Ord. 221, Sec. 6, 1982)
3.34.070 Seller’s Obligation.
Taxes imposed herein 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. 358, Sec. 6, 1990; Ord. 221, Sec. 7, 1982)
3.34.080 Lien Provisions.
The taxes imposed herein 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 manner of enforcement is not an election not to pursue another type of enforcement. (Ord. 358, Sec. 7, 1990; Ord. 221, Sec. 8, 1982)
3.34.090 Notation of Payment.
The taxes imposed herein shall be paid to and collected by the Treasurer of Snohomish County and the County Treasurer shall act as agent for the City for the purpose of collecting this tax. The County Treasurer shall cause a stamp evidencing the 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 in Section 3.34.070 of this Chapter 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 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 a suitable notation of this fact is made on the instrument by the County Treasurer. (Ord. 358, Sec. 8, 1990; Ord. 221, Sec. 9, 1982)
3.34.100 Date Payable.
The tax imposed hereunder 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. 358, Sec. 9, 1990; Ord. 221, Sec. 10, 1982)
3.34.110 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 the sale or other transfer declared as 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 shall be withheld from the next monthly distribution to the City. (Ord. 358, Sec. 10, 1990; Ord. 221, Sec. 11, 1982)
3.34.120 Severability.
If any portion of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected. (Ord. 358, Sec. 11, 1990; Ord. 221, Sec. 12, 1982)