HB 1044
In CommitteeHouse
County REET admin. fees
Concerning county fees for administration of the real estate excise tax.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill raises the county administrative fee for processing real estate excise tax transactions from $5 to $20, and directs the revenue to new county funds supporting assessors and treasurers. It also updates how fees are collected, distributed, and adjusted for inflation.
- Increases the county REET administrative fee from $5.00 to $20.00 per transaction, regardless of whether tax is owed.
- Creates two new county funds — the county assessor administrative assistance fund and the county treasurer administrative assistance fund — to support property valuation and tax collection functions.
- Requires that 65% of the new $20 fee go to the county assessor fund and 35% go to the county treasurer fund.
- Allows the state department of revenue to adjust the fee every four years based on shelter-related inflation (consumer price index), starting in 2029, with the next adjustment effective January 1, 2030.
- Requires counties to use the funds exclusively for statutory duties of the assessor and treasurer offices, including property revaluation systems and electronic reporting tools.
Who is affected
- County assessors — County assessors receive increased funding to support property valuation activities, including maintaining annual revaluation systems and electronic reporting tools.
- County treasurers — County treasurers receive increased funding to support property tax collection and distribution functions, including electronic processing of real estate excise tax affidavits.
- Real estate buyers and sellers — People buying or selling real estate in Washington will pay a higher fee ($20 instead of $5) for each transaction, even if no tax is owed.
- Counties statewide — All 39 counties receive funding based on population and equal distribution, helping support local government operations related to property assessment and tax collection.
Pro/Con Analysis
Potential Benefits (5)
Creates dedicated, non-appropriated funds for county assessors and treasurers, improving financial stability and operational capacity for property valuation and tax collection—functions critical to fair and efficient property tax administration.
Local GovernmentPeopleRef: Sec. 2(5)(c)(i–ii) and Sec. 3–4Funds support modernization of property revaluation systems and electronic reporting, reducing valuation errors and disputes—thereby decreasing litigation risk and enhancing trust in local government fairness.
Public SafetyPeopleRef: Sec. 2(5)(c)(i) and Sec. 3(1)Enables counties to invest in digital infrastructure (e.g., e-filing, automated valuation tools), which can reduce administrative costs over time and create local tech jobs in county IT and data management.
Business & EmploymentPeopleRef: Sec. 2(5)(c)(ii) and Sec. 3(2)More accurate and timely property valuations improve the reliability of school funding formulas, which rely heavily on assessed property values—supporting equitable K–12 and higher education resource allocation.
EducationPeopleRef: Sec. 2(5)(c)(i) and Sec. 3(1)Improved property valuation accuracy helps prevent over- or under-assessment, protecting homeowners—especially seniors and fixed-income households—from unfair tax spikes due to valuation errors.
HousingLean peopleRef: Sec. 2(5)(c)(i) and Sec. 3(1)
Potential Concerns (5)
Increases the real estate excise tax (REET) administrative fee from $5 to $20 per transaction, effectively imposing a $15 per-transaction tax increase on all real estate buyers and sellers—even when no REET is owed—reducing disposable income and potentially discouraging property transactions.
FinancialPeopleRef: Sec. 2(4)(a)The fee increase applies to all transactions, including low-value sales and transfers between family members (e.g., inheritance, gifting), disproportionately burdening lower-income households and seniors downsizing or transferring homes—groups already constrained by housing affordability.
HousingPeopleRef: Sec. 2(4)(a) and Sec. 2(5)(c)(i–ii)While counties receive increased funding, the fee is capped at $20 (plus inflation adjustments), meaning revenue growth is modest and capped—unlike the rising costs of property revaluation and digital infrastructure, which may outpace fee increases over time.
Local GovernmentLean peopleRef: Sec. 2(4)(b)(ii) and Sec. 2(5)(c)(i–ii)Inflation indexing tied only to shelter CPI (not general CPI) may undercompensate for broader cost-of-living increases, especially for counties with high non-shelter inflation (e.g., labor, software, compliance), limiting the real-term value of the fee increases.
FinancialLean peopleRef: Sec. 2(4)(b)(i)The four-year inflation adjustment cycle introduces uncertainty for long-term budgeting, as counties must forecast needs and costs over multi-year windows without annual flexibility.
Local GovernmentRef: Sec. 2(4)(b)(ii)
Who Is Most Affected
Real estate buyers and sellers face a $15 per-transaction fee increase ($5 → $20), regardless of tax liability—hurting low- and middle-income households most, especially in high-turnover markets like King County. This reduces net proceeds from home sales and may delay transactions.
County assessors gain dedicated, non-appropriated funding to modernize valuation systems and reduce errors—improving service quality and reducing legal liability. However, they must still operate within the fixed fee structure, limiting scalability if costs outpace inflation.
County treasurers receive 35% of the fee increase to support electronic tax processing and distribution—enhancing efficiency and reducing manual errors. But the fixed fee cap and infrequent inflation adjustments may constrain long-term capacity.
Counties as a whole gain new revenue streams, but the per-transaction fee is flat and capped—meaning rural and low-transaction-county (e.g., Eastern WA) receive less per capita than urban counties, potentially widening service disparities.
Homeowners benefit from more accurate property valuations and reduced valuation disputes, but only if the fee increase doesn’t offset gains—especially seniors and low-income households may see net harm if home sales decline or refinancing becomes less viable.