WA People
BILL · 2025–26 SESSION · LATEST VERSION SHB 1791

HB 1791: Local real estate excise tax

Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.

Summary

  • Aligns allowable uses of real estate excise tax (REET) 1 and 2 revenues.
  • Removes the expiration date on the ability to use certain local government REET funds for facilities for those experiencing homelessness or for affordable housing and removes a $1 million limit on the annual use of such funds.
  • Makes the ability for local governments to use up to 35 percent of REET revenues for operations and maintenance permanent.
  • Removes certain reporting requirements for use of REET 1 and 2 revenues.
  • Creates a REET exemption for certain sales of portions of affordable housing developments for specific community purposes.

From the Substitute House Bill Report (SHB 1791), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 159, Laws of 2025
  1. IntroducedFeb 3, 2025
  2. Out of committeeFeb 28, 2025
  3. Passed HouseMar 6, 2025
  4. Passed SenateApr 15, 2025
  5. GovernorApr 24, 2025
  6. LawApr 24, 2025
Prime sponsor
Dave Paul (D-10)
Introduced
February 3, 2025 in the House
Last action
April 24, 2025
Session law
Chapter 159, Laws of 2025
Budget
Has a fiscal note
Versions
HB 1791, SHB 1791

AN ACT Relating to increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax;

Sponsors

Prime sponsor: Dave Paul (D-10)

6 co-sponsors (5 Democrats, 1 Republican)

Sam Low R-39Alex Ramel D-40Strom Peterson D-21Greg Nance D-23Larry Springer D-45Mari Leavitt D-28

Votes

House · 3rd Reading & Final Passage

Passed March 6, 2025
Version voted on: SHB 1791
60 Yea 37 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat57101
Republican33600
How each member voted

Yea (60)

Excused (1)

Permalink to this vote

Senate · 3rd Reading & Final Passage

Passed April 15, 2025
Version voted on: SHB 1791
29 Yea 19 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat28101
Republican11800
How each member voted

Excused (1)

Permalink to this vote

History

  1. Effective date 7/27/2025*. (SHB 1791)
  2. Chapter 159, 2025 Laws. (SHB 1791)
  3. Governor signed. (SHB 1791)
  4. Delivered to Governor. (SHB 1791)
  5. President signed. (SHB 1791)
  6. Speaker signed. (SHB 1791)
  7. Third reading, passed; yeas, 29; nays, 19; absent, 0; excused, 1. (SHB 1791)
  8. Rules suspended. Placed on Third Reading. (SHB 1791)
  9. Placed on second reading by Rules Committee. (SHB 1791)
  10. Passed to Rules Committee for second reading. (SHB 1791)
  11. Minority; without recommendation. (SHB 1791)
  12. Minority; do not pass. (SHB 1791)
  13. WM - Majority; do pass. (SHB 1791)
  14. First reading, referred to Ways & Means. (SHB 1791)
  15. Third reading, passed; yeas, 60; nays, 37; absent, 0; excused, 1. (SHB 1791)
  16. Rules suspended. Placed on Third Reading. (SHB 1791)
  17. 1st substitute bill substituted. (SHB 1791)
  18. 1st substitute bill substituted.
  19. Rules Committee relieved of further consideration. Placed on second reading. (SHB 1791)
  20. Rules Committee relieved of further consideration. Placed on second reading.
  21. Referred to Rules 2 Review. (SHB 1791)
  22. Referred to Rules 2 Review.
  23. FIN - Majority; 1st substitute bill be substituted, do pass. (SHB 1791)
  24. Minority; do not pass. (SHB 1791)
  25. Minority; without recommendation. (SHB 1791)
  26. Minority; without recommendation.
  27. Minority; do not pass.
  28. FIN - Majority; 1st substitute bill be substituted, do pass.
  29. FIN - Executive action taken by committee.
  30. First reading, referred to Finance.

HB 1791 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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