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REET 2 — THE "SECOND QUARTER PERCENT"
<br />Quick Summary
<br />Any county that is fully planning under GMA may Impose an additional 0 25% excise tax upon all real
<br />estate sales, in addition to the tax Imposed under REET 1
<br />Revenues are restricted and may only be used for certain transportation, water/storm/sewer, and
<br />park Capital purposes
<br />May also be used, with additional reporting requirements, for
<br />— Limited capital facility maintenance
<br />— REE;T 1 capital projects
<br />— Affordable housing and homelessness (through January 1, 2026 only)
<br />Does not require voter approval for counties required to plan under GMA, but does require voter
<br />approval for counties voluntarily planning under GMA
<br />RCW 82A6.035(2)
<br />In addition to REET 1, any county that is fully planning under the Growth Management Act (GMA) may impose an
<br />additional 0.25% excise tax — known as "REET 2" or the "second quarter percent" — upon all real estate sales
<br />within the unincorporated area only (RCW 82.46.035). For counties that are required to fully plan under GMA,
<br />REET 2 may be imposed by the legislative body and does not require voter approval. However, any county that
<br />is voluntarily choosing to plan under GMA must submit the REET 2 proposition to voters.
<br />Ballot Measure Requirements for Voluntary GMA Counties
<br />Voter approval for REET 2 is only required for counties that are voluntarily planning under GMA. The
<br />proposition may be submitted at any special, primary,39 or general election and must be approved by a simple
<br />majority of voters. According to MRSC's Local Ballot Measure Database, the only county to attempt a voted
<br />REET 2 measure in recent years was Pacific County, but the measure failed.
<br />Use of Revenues
<br />REET 2 revenues are restricted and may only be used for financing "capital projects" specified in the capital
<br />facilities plan element of the county's comprehensive land use plan. RCW 82.46.035(5) defines "capital project" as:
<br />(a) Planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement
<br />of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic
<br />water systems, storm and sanitary sewer systems;
<br />(b) Planning, construction, reconstruction, repair, rehabilitation, or improvement of parks; and
<br />(c) Until January 1, 2026, planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation,
<br />or improvement of facilities for those experiencing homelessness and affordable housing projects.
<br />39 RCW 82.46.035(2) states that the proposition must be submitted "at a general election held within the d?strict or at a special
<br />election within the taxing district," which at first glance might seem to rule out the August primary election. However, RCW
<br />29A.04.321(2), which establishes the election schedule for local governments, authorizes the county to call up to four "special
<br />eiections" each year, including the primary election. 5o for these purposes, "special election" includes the primary election.
<br />Revenue Guide for Washington Counties I NovEMBER 2020 108
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