Chapter 3.10
REAL ESTATE SALES TAX
Sections:
Article I. Real Estate Sales Tax
3.10.010 One-quarter percent excise tax on real estate sales.
3.10.020 County to collect payment.
3.10.030 Tax is obligation of seller.
3.10.040 Tax lien on real property.
3.10.050 Duties of county treasurer.
3.10.080 Creation of REET 1 capital projects fund.
Article II. Additional Real Estate Sales Tax
3.10.100 Additional one-quarter percent excise tax on real estate sales.
3.10.110 County to collect payment.
3.10.120 Tax is obligation of seller.
3.10.130 Tax lien on real property.
3.10.140 Duties of county treasurer.
3.10.170 Creation of REET 2 capital projects fund.
Article I. Real Estate Sales Tax
3.10.010 One-quarter percent excise tax on real estate sales.
A. Imposition. Pursuant to RCW 82.46.010, there is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW, as the same now exists or may hereafter be amended. The tax imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW, as the same now exists or may hereafter be amended, and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapters 82.45 and 82.46 RCW, as the same now exist or may hereafter be amended.
B. Tax Rate. The rate of tax imposed by this section pursuant to RCW 82.46.010, as the same now exists or may hereafter be amended, shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed.
C. Use of Proceeds. All proceeds from the tax imposed by this section shall be placed by the finance director/city treasurer, or authorized designee, in the City’s capital project fund, with expenditures therefrom restricted solely to those uses permitted by state law; namely, for any capital purpose identified in a capital improvements plan and local capital improvements including those listed in RCW 35.43.040. (Ord. 11-013 § 3, 2011; Ord. 17 § 1, 2003).
3.10.020 County to collect payment.
The county treasurer shall collect the tax imposed by this article. The county treasurer shall place one percent of the proceeds of the taxes imposed and collected by this article in the county current expense fund to defray costs of collection. The remaining proceeds from City taxes imposed by this article shall be distributed to the City monthly. (Ord. 17 § 2, 2003).
3.10.030 Tax is obligation of seller.
The taxes imposed by this article 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. 17 § 3, 2003).
3.10.040 Tax lien on real property.
The taxes imposed by this article and any interest or penalties thereon is 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. Resort to one course of enforcement is not an election of remedies or a waiver of legal rights. (Ord. 17 § 4, 2003).
3.10.050 Duties of county treasurer.
The taxes imposed by this article shall be paid to and collected by the county treasurer. 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 herein shall be evidence of the satisfaction of the lien imposed by this article 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 Spokane County auditor’s office 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. 17 § 5, 2003).
3.10.060 Payment due.
The tax imposed by this article shall become due and payable immediately at the time of the sale, and if not so paid within 30 days thereafter, shall bear interest at the maximum rate permitted by law from the time of sale until the date of payment. (Ord. 17 § 6, 2003).
3.10.070 Refunds.
If, upon written application by a taxpayer to the county treasurer for a refund, it appears that 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 miscalculation. Any refund made shall be withheld from the next monthly distribution to the City of Spokane Valley. (Ord. 17 § 7, 2003).
3.10.080 Creation of REET 1 capital projects fund.
There is created a special City fund to be known as the REET 1 capital projects fund, into which shall be deposited all proceeds of the tax imposed by SVMC 3.10.010. Revenue in the REET 1 capital projects fund shall be used to finance capital projects specified in the capital facilities plan element of the City comprehensive plan. (Ord. 13-016 § 2, 2013; Ord. 17 § 8, 2003).
3.10.090 Violation – Penalty.
It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this article. Any person violating any provision of this article shall be guilty of a misdemeanor and upon conviction thereof, punished pursuant to state law or City ordinance. (Ord. 17 § 9, 2003).
Article II. Additional Real Estate Sales Tax
3.10.100 Additional one-quarter percent excise tax on real estate sales.
A. Imposition. Pursuant to RCW 82.46.035, there is imposed an additional excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW, as the same now exists or may hereafter be amended. The tax imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW, as the same now exists or may hereafter be amended, and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state of Washington under Chapters 82.45 and 82.46 RCW, as the same now exist or may hereafter be amended.
B. Tax Rate. The rate of tax imposed by this section pursuant to RCW 82.46.035, as the same now exists or may hereafter be amended, shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed.
C. Use of Proceeds. All proceeds from the tax imposed by this section shall be placed by the finance director/city treasurer, or authorized designee, in the City of Spokane Valley’s special capital project fund established under SVMC 3.10.170 and shall be used solely for financing capital projects, as specified in the capital facilities plan element of the City comprehensive plan approved by the city council. (Ord. 11-013 § 4, 2011; Ord. 18 § 1, 2003).
3.10.110 County to collect payment.
The county treasurer shall collect the tax imposed by this article. The county treasurer shall place one percent of the proceeds of the taxes imposed and collected by this article in the county current expense fund to defray costs of collection. The remaining proceeds from City of Spokane Valley taxes imposed by this article shall be distributed to the City of Spokane Valley monthly. (Ord. 18 § 2, 2003).
3.10.120 Tax is obligation of seller.
The taxes imposed by this article 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. 18 § 3, 2003).
3.10.130 Tax lien on real property.
The taxes imposed by this article and any interest or penalties thereon is 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. Resort to one course of enforcement is not an election not to pursue the other. (Ord. 18 § 4, 2003).
3.10.140 Duties of county treasurer.
The taxes imposed by this article shall be paid to and collected by the county treasurer. 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 herein shall be evidence of the satisfaction of the lien imposed by this article 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 Spokane County auditor’s office 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. 18 § 5, 2003).
3.10.150 Payment due.
The tax imposed by this article shall become due and payable immediately at the time of the sale, and if not so paid within 30 days thereafter, shall bear interest at the maximum rate permitted by law from the time of sale until the date of payment. (Ord. 18 § 6, 2003).
3.10.160 Refunds.
If, upon written application by a taxpayer to the county treasurer for a refund, it appears that 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 miscalculation. Any refund made shall be withheld from the next monthly distribution to the City of Spokane Valley. (Ord. 18 § 7, 2003).
3.10.170 Creation of REET 2 capital projects fund.
There is created a special fund to be known as the REET 2 capital projects fund, into which shall be deposited all proceeds of the tax imposed by SVMC 3.10.100. Revenue in the REET 2 capital projects fund shall be used to finance capital projects specified in the capital facilities plan element of the City comprehensive plan. (Ord. 13-016 § 2, 2013; Ord. 18 § 8, 2003).
3.10.180 Violation – Penalty.
It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this article. Any person violating any provision of this article shall be guilty of a misdemeanor and upon conviction thereof, punished pursuant to state law or City ordinance. (Ord. 18 § 9, 2003).