Chapter 3.62
REAL ESTATE EXCISE TAX
Sections:
3.62.020 Imposition of real estate excise tax.
3.62.040 Consistency with state tax.
3.62.050 Distribution of tax proceeds and limiting the use thereof.
3.62.010 Purpose.
A. Pursuant to Chapter 82.46 RCW, the State Legislature has empowered cities to adopt an excise tax on each sale of real property within the corporate limits to be collected by the county treasurer and used for municipal improvements; and
B. Most cities in the state have adopted the real estate excise tax; and
C. The city council finds that the city requires additional revenue sources in order to fund necessary municipal improvements and that the real estate excise tax is an appropriate tax for generating such necessary funds;
D. The city council ordains the sections set forth in this chapter. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.020 Imposition of real estate excise tax.
There is hereby imposed an excise tax on each sale of real property within the corporate limits of the city at the rate of one-quarter of one percent of the selling price. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.030 Taxable events.
The tax imposed in 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 as therein defined within the corporate limits of the city. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.040 Consistency with state tax.
The tax 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 shall apply as though fully set forth in this section. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.050 Distribution of tax proceeds and limiting the use thereof.
A. 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 the taxes imposed in this chapter shall be distributed to the city monthly and shall be placed by the clerk-treasurer in a municipal capital improvements fund to be used for municipal improvements.
C. This section shall not limit the existing authority of the city to impose special assessments on property specially benefited thereby in the manner prescribed by law. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.060 Lien provisions.
The tax imposed in this chapter 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. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.070 Seller’s obligation.
The tax imposed in this chapter is 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 to forgo the other. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.080 Notation of payment.
The tax imposed in this chapter shall be paid to and collected by the treasurer of Clallam County. The county treasurer shall act as agent for the city. 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 herein shall be evidence of the satisfaction of the lien imposed in SMC 3.62.060 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 suitable notation of this fact is made on the instrument by the county treasurer. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.090 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 date of payment. (Ord. 2009-036 § 1; Ord. 602, 1991)
3.62.100 Refunds.
Any contest of the application of the real estate excise tax or any other petition for a refund shall comply with WAC 458-61-100 as now or hereafter amended. Any refund made shall be withheld from the next monthly distribution to the city. (Ord. 2009-036 § 1; Ord. 602, 1991)