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Bill

HB 2064

Providing for an exemption from the real estate excise tax for transfers of property to qualifying low-income first-time homebuyers.

2023-2024 Regular Session Introduced by Mary Fosse and 4 co-sponsors

HB 2064 exempts qualifying low-income first-time homebuyers from Washington's real estate excise tax, reducing closing costs to increase housing accessibility.

First reading, referred to Finance.
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Bill Summary · HB 2064

Legislative bill overview

HB 2064 would exempt qualifying low-income first-time homebuyers from Washington's real estate excise tax on property transfers. The bill targets a specific demographic to reduce barriers to homeownership by eliminating a transaction cost that currently applies to all real estate sales in the state.

Why is this important

Washington's real estate excise tax currently ranges from 0.5% to 1.75% depending on the property value, adding thousands of dollars to closing costs for homebuyers. For low-income first-time buyers already struggling with down payments and financing, this tax represents a significant financial obstacle to homeownership, making this exemption potentially impactful for housing accessibility.

Potential points of contention

  • Revenue impact: The state legislature would need to account for lost excise tax revenue from qualifying transfers, requiring either budget reallocation or identification of offsetting revenue sources
  • Definition of "qualifying": The bill's practical effect depends heavily on how low-income thresholds and first-time buyer status are defined—criteria that are critical but not detailed in the bill summary
  • Market distortion concerns: Critics may argue the exemption could inflate demand or prices in segments targeting lower-income buyers, potentially undermining the affordability goal

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

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