Allowing counties or cities to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.

HB 1867 allows Washington counties or cities to impose a real estate excise tax of up to 0.5% on home sales, with proceeds dedicated exclusively to developing affordable housing for very low, low, and moderate-income residents and those with special needs. Local governments must first gain voter approval through a majority vote in an election, either via a resolution from local officials or a petition signed by 10% of eligible voters. The tax revenue must be managed through a competitive grant process for nonprofit housing providers, housing authorities, or public agencies, with spending plans requiring public hearings. Counties and cities cannot levy this tax if the county has already implemented a similar tax under prior law. This bill directly affects local governments and homebuyers/sellers in communities that choose to adopt the tax.