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HB 1628

Increasing the supply of affordable housing by modifying the state and local real estate excise tax.

2023-2024 Regular Session Introduced by Emily Alvarado and 30 co-sponsors

HB 1628 restructures Washington's real estate excise tax to incentivize affordable housing development by adjusting tax rates or application methods on property transactions.

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Bill Summary · HB 1628

Legislative bill overview

HB 1628 modifies Washington state's real estate excise tax structure to increase affordable housing supply. The bill adjusts how the state and local real estate excise tax is applied to property transactions, with the stated goal of generating revenue or incentives that support affordable housing development.

Why is this important

Housing affordability is a critical issue in Washington, particularly in high-growth urban areas. Real estate excise tax modifications can significantly impact housing market dynamics, affecting both developers' willingness to build and the final cost to buyers and renters. The bill attempts to balance housing supply goals with tax revenue considerations.

Potential points of contention

  • Tax incidence and burden: Changes to excise tax structure may shift costs between different buyer categories (first-time homebuyers, investors, developers) or between state and local governments in unpredictable ways
  • Market effects uncertainty: Whether tax modifications actually increase housing supply depends on how developers respond; tax cuts may not translate to more affordable units without additional requirements
  • Revenue implications: Modifying a major tax source could reduce funding for other state priorities unless revenue is clearly redirected to housing, creating competing fiscal interests

Compiled from official sources — confirm details with the bill’s official record.

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