Senate panel hears split testimony on bill to standardize REIT II authority for GMA cities
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Summary
A Senate committee heard competing testimony on SB 6,211 to let voluntarily planning Growth Management Act cities impose REIT II without a voter proposition. Cities and counties said it levels the playing field; realtors and taxpayers warned it removes a voter check and could raise closing costs.
A state Senate committee on local government heard spirited, divided testimony on a bill to let cities and counties that voluntarily plan under the Growth Management Act impose the second-tier local real estate excise tax, known as REIT II, without first submitting the measure to voters.
Sponsor Jeff Wilson, R-19th Legislative District, told the committee the measure aims to make REIT authority uniform for jurisdictions that choose to plan under the GMA, not to impose a tax without public scrutiny. "When it comes to taxation without a vote, I'd like to clarify that that could be a little bit misleading in this bill," Wilson said, adding the bill preserves local deliberation and public agendas.
Local elected officials and municipal staff urged lawmakers to pass the bill. "Tying REIT authority consistently to GMA compliance ensures all cities face the same consequences and garner the same incentives for meeting statewide planning requirements," said Rick Eskel, a Walla Walla city council member. Elizabeth Chamberlain, Walla Walla city manager, told the committee the city would use REIT II revenue for sidewalk and Americans with Disabilities Act upgrades. "The city completed an ADA transition plan back in 2020 that identified an $84,000,000 need," Chamberlain said.
County officials and the Association of Washington Cities backed the change as an equity fix. Paul Jewell of the Washington State Association of Counties said the bill gives counties and cities that opt into GMA planning the same tools as those required to plan, and would help finance transportation, water and sewer projects and other capital needs.
Opponents said the change removes a voter safeguard and risks making home sales more expensive. Mary Hall Drury of Washington Realtors testified in respectful opposition, saying a 0.25% REIT II on a median-priced $650,000 home "has a potential of increasing the tax to sell the home by an approximate $1,600" and that combined with other fees sellers could see overall costs of about $12,000. "We ask that you please oppose this measure," she said.
Public commenters amplified both themes: taxpayer advocates said the measure circumvents the people's will, while local officials urged uniformity and local choice in whether to use the tool.
Committee members asked multiple follow-up questions about property values, distributional effects and the fiscal note referenced by staff. Committee staff said a fiscal note is available that estimates costs to the Department of Revenue but the committee did not resolve those fiscal details during the hearing.
The committee closed public testimony and did not take a vote in the hearing. If advanced by the committee, the bill would next move through the Senate process where fiscal impacts and technical amendments could be addressed.