RCW 82.02.010
Definitions.
For the purpose of this title, unless the context clearly requires otherwise:
(1) "Cannabis," "cannabis-infused products," and "useable cannabis" have the meanings provided in RCW 69.50.101
;
(2) "Department" means the department of revenue of the state of Washington;
(3) "Director" means the director of the department of revenue of the state of Washington;
(4) "Frontier county" means a county with a population density of fewer than 50 persons per square mile as determined by the office of financial management and published each year by the department. A county with a population density of 21 or fewer persons per square mile is a "frontier one" county. A county with a population density of more than 21 but fewer than 50 persons per square mile is a "frontier two" county. Every frontier county is also a rural county as defined in RCW 82.14.370
and eligible for all benefits, services, and programs unless a frontier county is specifically excluded in the authorizing statute;
(5) "Taxpayer" includes any individual, group of individuals, corporation, or association liable for any tax or the collection of any tax hereunder, or who engages in any business or performs any act for which a tax is imposed by this title. "Taxpayer" also includes any person liable for any fee or other charge collected by the department under any provision of law, including registration assessments and delinquency fees imposed under RCW 59.30.050
; and
(6) Words in the singular number include the plural and the plural include the singular. Words in one gender include all other genders.
[
2024 c 47 s 3
;
2022 c 16 s 137
;
2014 c 140 s 30
;
2011 c 298 s 37
;
1979 c 107 s 9
;
1967 ex.s. c 26 s 14
;
1961 c 15 s 82.02.010
. Prior:
1935 c 180 s 3
; RRS s 8370-3.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Purpose
—
Intent
—
Agency transfer
—
Contracting
—
Effective date
—
2011 c 298:
See notes following RCW 19.02.020
.
Effective date
—
1967 ex.s. c 26:
See note following RCW 82.01.050
.
RCW 82.02.020
State preempts certain tax fields
—
Fees prohibited for the development of land or buildings
—
Voluntary payments by developers authorized
—
Limitations
—
Exceptions.
(Effective until January 1, 2028.)
Except only as expressly provided in chapters
67.28, 81.104, and
82.14
RCW, the state preempts the field of imposing retail sales and use taxes and taxes upon parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 64.34.440
and
82.02.050
through
82.02.090, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.
This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter
39.92
RCW. Any such voluntary agreement is subject to the following provisions:
(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;
(2) The payment shall be expended in all cases within five years of collection; and
(3) Any payment not so expended shall be refunded with interest to be calculated from the original date the deposit was received by the county and at the same rate applied to tax refunds pursuant to RCW 84.69.100
; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.
No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.
Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter
43.21C
RCW, including reasonable fees that are consistent with RCW 43.21C.420
(6), 43.21C.428, and beginning July 1, 2014, RCW 35.91.020
.
This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefited thereby in the manner prescribed by law.
Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges. However, no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged. Furthermore, these provisions may not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.
Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120
nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.
Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter
39.92
RCW.
Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440
and
59.18.450
.
Nothing in this section limits the authority of counties, cities, or towns to implement programs consistent with RCW 36.70A.540, nor to enforce agreements made pursuant to such programs.
This section does not apply to special purpose districts formed and acting pursuant to Title
54, 57, or
87
RCW, nor is the authority conferred by these titles affected.
[
2013 c 243 s 4
;
2010 c 153 s 3
;
2009 c 535 s 1103
;
2008 c 113 s 2
;
2006 c 149 s 3
;
2005 c 502 s 5
;
1997 c 452 s 21
;
1996 c 230 s 1612
;
1990 1st ex.s. c 17 s 42
;
1988 c 179 s 6
;
1987 c 327 s 17
;
1982 1st ex.s. c 49 s 5
;
1979 ex.s. c 196 s 3
;
1970 ex.s. c 94 s 8
;
1967 c 236 s 16
;
1961 c 15 s 82.02.020
. Prior: (i)
1935 c 180 s 29
; RRS s 8370-29. (ii)
1949 c 228 s 28
;
1939 c 225 s 22
;
1937 c 227 s 24
; Rem. Supp. 1949 s 8370-219. Formerly RCW 82.32.370
.]
NOTES:
Intent
—
2010 c 153:
See note following RCW 43.21C.420
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Application
—
Effective date
—
2008 c 113:
See notes following RCW 64.34.440
.
Findings
—
Construction
—
2006 c 149:
See notes following RCW 36.70A.540
.
Effective date
—
2005 c 502:
See note following RCW 1.12.070
.
Intent
—
Severability
—
1997 c 452:
See notes following RCW 67.28.080
.
Savings
—
1997 c 452:
See note following RCW 67.28.181
.
Part headings not law
—
Effective date
—
1996 c 230:
See notes following RCW 57.02.001
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
Severability
—
Prospective application
—
Section captions
—
1988 c 179:
See RCW 39.92.900
and
39.92.901
.
Intent
—
Construction
—
Effective date
—
Fire district funding
—
1982 1st ex.s. c 49:
See notes following RCW 35.21.710
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
PDF
RCW 82.02.020
State preempts certain tax fields
—
Fees prohibited for the development of land or buildings
—
Voluntary payments by developers authorized
—
Limitations
—
Exceptions.
(Effective January 1, 2028.)
Except only as expressly provided in chapters
67.28, 81.104, and
82.14
RCW, the state preempts the field of imposing retail sales and use taxes and taxes upon parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 64.90.655
and
82.02.050
through
82.02.090, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.
This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter
39.92
RCW. Any such voluntary agreement is subject to the following provisions:
(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;
(2) The payment shall be expended in all cases within five years of collection; and
(3) Any payment not so expended shall be refunded with interest to be calculated from the original date the deposit was received by the county and at the same rate applied to tax refunds pursuant to RCW 84.69.100
; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.
No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.
Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter
43.21C
RCW, including reasonable fees that are consistent with RCW 43.21C.420
(6), 43.21C.428, and beginning July 1, 2014, RCW 35.91.020
.
This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefited thereby in the manner prescribed by law.
Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges. However, no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged. Furthermore, these provisions may not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.
Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120
nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.
Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter
39.92
RCW.
Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440
and
59.18.450
.
Nothing in this section limits the authority of counties, cities, or towns to implement programs consistent with RCW 36.70A.540, nor to enforce agreements made pursuant to such programs.
This section does not apply to special purpose districts formed and acting pursuant to Title
54, 57, or
87
RCW, nor is the authority conferred by these titles affected.
[
2024 c 321 s 431
;
2013 c 243 s 4
;
2010 c 153 s 3
;
2009 c 535 s 1103
;
2008 c 113 s 2
;
2006 c 149 s 3
;
2005 c 502 s 5
;
1997 c 452 s 21
;
1996 c 230 s 1612
;
1990 1st ex.s. c 17 s 42
;
1988 c 179 s 6
;
1987 c 327 s 17
;
1982 1st ex.s. c 49 s 5
;
1979 ex.s. c 196 s 3
;
1970 ex.s. c 94 s 8
;
1967 c 236 s 16
;
1961 c 15 s 82.02.020
. Prior: (i)
1935 c 180 s 29
; RRS s 8370-29. (ii)
1949 c 228 s 28
;
1939 c 225 s 22
;
1937 c 227 s 24
; Rem. Supp. 1949 s 8370-219. Formerly RCW 82.32.370
.]
NOTES:
Effective dates
—
2024 c 321 ss 319 and 401-432:
See note following RCW 64.90.485
.
Intent
—
2010 c 153:
See note following RCW 43.21C.420
.
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
Application
—
Effective date
—
2008 c 113:
See notes following RCW 64.34.440
.
Findings
—
Construction
—
2006 c 149:
See notes following RCW 36.70A.540
.
Effective date
—
2005 c 502:
See note following RCW 1.12.070
.
Intent
—
Severability
—
1997 c 452:
See notes following RCW 67.28.080
.
Savings
—
1997 c 452:
See note following RCW 67.28.181
.
Part headings not law
—
Effective date
—
1996 c 230:
See notes following RCW 57.02.001
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
Severability
—
Prospective application
—
Section captions
—
1988 c 179:
See RCW 39.92.900
and
39.92.901
.
Intent
—
Construction
—
Effective date
—
Fire district funding
—
1982 1st ex.s. c 49:
See notes following RCW 35.21.710
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
RCW 82.02.030
Additional tax rates.
The rate of the additional taxes under RCW 54.28.020
(2), 54.28.025
(2), 66.24.210
(2), 82.16.020
(2), 82.27.020
(5), and
82.29A.030
(2) shall be seven percent.
[
1993 sp.s. c 25 s 107
;
1993 c 492 s 312
;
1990 c 42 s 319
. Prior:
1987 1st ex.s. c 9 s 6
;
1987 c 472 s 15
;
1987 c 80 s 4
;
1986 c 296 s 5
;
1985 c 471 s 9
;
1983 2nd ex.s. c 3 s 6
;
1983 c 7 s 8
;
1982 2nd ex.s. c 14 s 1
;
1982 1st ex.s. c 35 s 31
.]
NOTES:
Severability
—
Effective dates
—
Part headings, captions not law
—
1993 sp.s. c 25:
See notes following RCW 82.04.230
.
Findings
—
Intent
—
1993 c 492:
See notes following RCW 43.20.050
.
Short title
—
Savings
—
Reservation of legislative power
—
Effective dates
—
1993 c 492:
See RCW 43.72.910
through
43.72.915
.
Purpose
—
Effective dates
—
Application
—
Implementation
—
1990 c 42:
See notes following RCW 46.68.090
.
Severability
—
Effective date
—
1987 1st ex.s. c 9:
See notes following RCW 46.29.050
.
Severability
—
Effective date
—
1986 c 296:
See notes following RCW 48.14.020
.
Severability
—
Effective date
—
1985 c 471:
See notes following RCW 82.04.260
.
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
Severability
—
Effective dates
—
1983 c 7:
See notes following RCW 82.08.020
.
Effective date
—
Applicability
—
1982 2nd ex.s. c 14:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.
The tax rates imposed under this act are effective on the dates designated in this act notwithstanding the date this act becomes law under Article III, section 12 of the state Constitution." [
1982 2nd ex.s. c 14 s 3
.]
Severability
—
Effective dates
—
1982 1st ex.s. c 35:
See notes following RCW 82.08.020
.
RCW 82.02.040
Authority of operating agencies to levy taxes.
Nothing in this title may be deemed to grant to any operating agency organized under chapter
43.52
RCW, or a project of any such operating agency, the authority to levy any tax or assessment not otherwise authorized by law.
[
1983 2nd ex.s. c 3 s 55
.]
NOTES:
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
RCW 82.02.050
Impact fees
—
Intent
—
Limitations.
(1) It is the intent of the legislature:
(a) To ensure that adequate facilities are available to serve new growth and development;
(b) To promote orderly growth and development by establishing standards by which counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new facilities needed to serve new growth and development; and
(c) To ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact.
(2) Counties, cities, and towns that are required or choose to plan under RCW 36.70A.040
are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees.
(3)(a)(i) Counties, cities, and towns collecting impact fees must, by September 1, 2016, adopt and maintain a system for the deferred collection of impact fees for single-family detached and attached residential construction. The deferral system must include a process by which an applicant for a building permit for a single-family detached or attached residence may request a deferral of the full impact fee payment. The deferral system offered by a county, city, or town under this subsection (3) must include one or more of the following options:
(A) Deferring collection of the impact fee payment until final inspection;
(B) Deferring collection of the impact fee payment until certificate of occupancy or equivalent certification; or
(C) Deferring collection of the impact fee payment until the time of closing of the first sale of the property occurring after the issuance of the applicable building permit.
(ii) Counties, cities, and towns utilizing the deferral process required by this subsection (3)(a) may withhold certification of final inspection, certificate of occupancy, or equivalent certification until the impact fees have been paid in full.
(iii) The amount of impact fees that may be deferred under this subsection (3) must be determined by the fees in effect at the time the applicant applies for a deferral.
(iv) Unless an agreement to the contrary is reached between the buyer and seller, the payment of impact fees due at closing of a sale must be made from the seller's proceeds. In the absence of an agreement to the contrary, the seller bears strict liability for the payment of the impact fees.
(b) The term of an impact fee deferral under this subsection (3) may not exceed eighteen months from the date of building permit issuance.
(c) Except as may otherwise be authorized in accordance with (f) of this subsection (3), an applicant seeking a deferral under this subsection (3) must grant and record a deferred impact fee lien against the property in favor of the county, city, or town in the amount of the deferred impact fee. The deferred impact fee lien, which must include the legal description, tax account number, and address of the property, must also be:
(i) In a form approved by the county, city, or town;
(ii) Signed by all owners of the property, with all signatures acknowledged as required for a deed, and recorded in the county where the property is located;
(iii) Binding on all successors in title after the recordation; and
(iv) Junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees.
(d)(i) If impact fees are not paid in accordance with a deferral authorized by this subsection (3), and in accordance with the term provisions established in (b) of this subsection (3), the county, city, or town may institute foreclosure proceedings in accordance with chapter
61.12
RCW.
(ii) If the county, city, or town does not institute foreclosure proceedings for unpaid school impact fees within forty-five days after receiving notice from a school district requesting that it do so, the district may institute foreclosure proceedings with respect to the unpaid impact fees.
(e)(i) Upon receipt of final payment of all deferred impact fees for a property, the county, city, or town must execute a release of deferred impact fee lien for the property. The property owner at the time of the release, at his or her expense, is responsible for recording the lien release.
(ii) The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the impact fees as a condition of final inspection, certificate of occupancy, or equivalent certification, or at the time of closing of the first sale.
(f) A county, city, or town with an impact fee deferral process on or before April 1, 2015, is exempt from the requirements of this subsection (3) if the deferral process delays all impact fees and remains in effect after September 1, 2016.
(g)(i) Each applicant for a single-family residential construction permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this subsection (3) for the first twenty single-family residential construction building permits per county, city, or town. A county, city, or town, however, may elect, by ordinance, to defer more than twenty single-family residential construction building permits for an applicant. If the county, city, or town collects impact fees on behalf of one or more school districts for which the collection of impact fees could be delayed, the county, city, or town must consult with the district or districts about the additional deferrals. A county, city, or town considering additional deferrals must give substantial weight to recommendations of each applicable school district regarding the number of additional deferrals. If the county, city, or town disagrees with the recommendations of one or more school districts, the county, city, or town must provide the district or districts with a written rationale for its decision.
(ii) For purposes of this subsection (3)(g), an "applicant" includes an entity that controls the applicant, is controlled by the applicant, or is under common control with the applicant.
(h) Counties, cities, and towns may collect reasonable administrative fees to implement this subsection (3) from permit applicants who are seeking to delay the payment of impact fees under this subsection (3).
(i) In accordance with RCW *
44.28.812
and
43.31.980, counties, cities, and towns must cooperate with and provide requested data, materials, and assistance to the department of commerce and the joint legislative audit and review committee.
(4) The impact fees:
(a) Shall only be imposed for system improvements that are reasonably related to the new development;
(b) Shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development; and
(c) Shall be used for system improvements that will reasonably benefit the new development.
(5)(a) Impact fees may be collected and spent only for the public facilities defined in RCW 82.02.090
which are addressed by a capital facilities plan element of a comprehensive land use plan adopted pursuant to the provisions of RCW 36.70A.070
or the provisions for comprehensive plan adoption contained in chapter
36.70, 35.63, or
35A.63
RCW. After the date a county, city, or town is required to adopt its development regulations under chapter
36.70A
RCW, continued authorization to collect and expend impact fees is contingent on the county, city, or town adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and on the capital facilities plan identifying:
(i) Deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a reasonable period of time;
(ii) Additional demands placed on existing public facilities by new development; and
(iii) Additional public facility improvements required to serve new development.
(b) If the capital facilities plan of the county, city, or town is complete other than for the inclusion of those elements which are the responsibility of a special district, the county, city, or town may impose impact fees to address those public facility needs for which the county, city, or town is responsible.
[
2015 c 241 s 1
;
1994 c 257 s 24
;
1993 sp.s. c 6 s 6
;
1990 1st ex.s. c 17 s 43
.]
NOTES:
*Reviser's note:
RCW 44.28.812
expired January 1, 2022.
Effective date
—
2015 c 241:
"This act takes effect September 1, 2016." [
2015 c 241 s 5
.]
Severability
—
1994 c 257:
See note following RCW 36.70A.270
.
Effective date
—
1993 sp.s. c 6:
See note following RCW 36.70A.040
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
SEPA: RCW 43.21C.065
.
RCW 82.02.060
Impact fees
—
Local ordinances
—
Required provisions
—
Exemptions.
The local ordinance by which impact fees are imposed:
(1) Shall include a schedule of impact fees which shall be adopted for each type of development activity that is subject to impact fees, specifying the amount of the impact fee to be imposed for each type of system improvement. The schedule shall be based upon a formula or other method of calculating such impact fees. The schedule shall reflect the proportionate impact of new housing units, including multifamily and condominium units, based on the square footage, number of bedrooms, or trips generated, in the housing unit in order to produce a proportionally lower impact fee for smaller housing units. In determining proportionate share, the formula or other method of calculating impact fees shall incorporate, among other things, the following:
(a) The cost of public facilities necessitated by new development;
(b) An adjustment to the cost of the public facilities for past or future payments made or reasonably anticipated to be made by new development to pay for particular system improvements in the form of user fees, debt service payments, taxes, or other payments earmarked for or proratable to the particular system improvement;
(c) The availability of other means of funding public facility improvements;
(d) The cost of existing public facilities improvements; and
(e) The methods by which public facilities improvements were financed;
(2) May provide an exemption for low-income housing, and other development activities with broad public purposes, including development of an early learning facility, from these impact fees, provided that the impact fees for such development activity shall be paid from public funds other than impact fee accounts;
(3)(a) May not impose an impact fee on development activities of an early learning facility greater than that imposed on commercial retail or commercial office development activities that generate a similar number, volume, type, and duration of vehicle trips;
(b) When a facility or development has more than one use, the limitations in this subsection (3) or the exemption applicable to an early learning facility in subsections (2) and (4) of this section only apply to that portion that is developed as an early learning facility. The impact fee assessed on an early learning facility in such a development or facility may not exceed the least of the impact fees assessed on comparable businesses in the facility or development;
(4) May provide an exemption from impact fees for low-income housing or for early learning facilities. Local governments that grant exemptions for low-income housing or for early learning facilities under this subsection (4) may either: Grant a partial exemption of not more than 80 percent of impact fees, in which case there is no explicit requirement to pay the exempted portion of the fee from public funds other than impact fee accounts; or provide a full waiver, in which case the remaining percentage of the exempted fee must be paid from public funds other than impact fee accounts, except as provided in (b) of this subsection. These exemptions are subject to the following requirements:
(a) An exemption for low-income housing granted under subsection (2) of this section or this subsection (4) must be conditioned upon requiring the developer to record a covenant that, except as provided otherwise by this subsection, prohibits using the property for any purpose other than for low-income housing. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing, and that if the property is converted to a use other than for low-income housing, the property owner must pay the applicable impact fees in effect at the time of conversion;
(b) An exemption for early learning facilities granted under subsection (2) of this section or this subsection (4) may be a full waiver without an explicit requirement to pay the exempted portion of the fee from public funds other than impact fee accounts if the local government requires the developer to record a covenant that requires that at least 25 percent of the children and families using the early learning facility qualify for state subsidized child care, including early childhood education and assistance under chapter
43.216
RCW, and that provides that if the property is converted to a use other than for an early learning facility, the property owner must pay the applicable impact fees in effect at the time of conversion, and that also provides that if at no point during a calendar year does the early learning facility achieve the required percentage of children and families qualified for state subsidized child care using the early learning facility, the property owner must pay 20 percent of the impact fee that would have been imposed on the development had there not been an exemption within 90 days of the local government notifying the property owner of the breach, and any balance remaining thereafter shall be a lien on the property; and
(c) Covenants required by (a) and (b) of this subsection must be recorded with the applicable county auditor or recording officer. A local government granting an exemption under subsection (2) of this section or this subsection (4) for low-income housing or an early learning facility may not collect revenue lost through granting an exemption by increasing impact fees unrelated to the exemption. A school district who receives school impact fees must approve any exemption under subsection (2) of this section or this subsection (4);
(5) Shall provide a credit for the value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer, to facilities that are identified in the capital facilities plan and that are required by the county, city, or town as a condition of approving the development activity;
(6) Shall allow the county, city, or town imposing the impact fees to adjust the standard impact fee at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that impact fees are imposed fairly;
(7) Shall include a provision for calculating the amount of the fee to be imposed on a particular development that permits consideration of studies and data submitted by the developer to adjust the amount of the fee;
(8) Shall establish one or more reasonable service areas within which it shall calculate and impose impact fees for various land use categories per unit of development;
(9) May provide for the imposition of an impact fee for system improvement costs previously incurred by a county, city, or town to the extent that new growth and development will be served by the previously constructed improvements provided such fee shall not be imposed to make up for any system improvement deficiencies;
(10) Shall provide a 50 percent reduction of the impact fees specified in the schedule of impact fees for system improvements under RCW 82.02.090
(7)(a) if the project is within a station area and claiming a multiple-unit housing property tax exemption under RCW 84.14.020
(1)(a)(ii)(D); and
(11) Must adopt or amend by ordinance, and incorporate into their development regulations, zoning regulations, and other official controls the requirements of this section to take effect six months after the jurisdiction's next periodic comprehensive plan update required under RCW 36.70A.130
.
For purposes of this section, "low-income housing" means housing with a monthly housing expense, that is no greater than 30 percent of 80 percent of the median family income adjusted for family size, for the county where the project is located, as reported by the United States department of housing and urban development.
For the purposes of this section, "early learning facility" has the same meaning as in RCW 43.31.565
.
[
2025 c 267 s 20
;
2023 c 337 s 10
;
2021 c 72 s 1
;
2012 c 200 s 1
;
1990 1st ex.s. c 17 s 44
.]
NOTES:
Findings
—
2025 c 267:
See note following RCW 36.70A.840
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
RCW 82.02.070
Impact fees
—
Retained in special accounts
—
Limitations on use
—
Administrative appeals.
(1) Impact fee receipts shall be earmarked specifically and retained in special interest-bearing accounts. Separate accounts shall be established for each type of public facility for which impact fees are collected. All interest shall be retained in the account and expended for the purpose or purposes for which the impact fees were imposed. Annually, each county, city, or town imposing impact fees shall provide a report on each impact fee account showing the source and amount of all moneys collected, earned, or received and system improvements that were financed in whole or in part by impact fees.
(2) Impact fees for system improvements shall be expended only in conformance with the capital facilities plan element of the comprehensive plan.
(3)(a) Except as provided otherwise by (b) of this subsection, impact fees shall be expended or encumbered for a permissible use within ten years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than ten years. Such extraordinary or compelling reasons shall be identified in written findings by the governing body of the county, city, or town.
(b) School impact fees must be expended or encumbered for a permissible use within ten years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than ten years. Such extraordinary or compelling reasons shall be identified in written findings by the governing body of the county, city, or town.
(4) Impact fees may be paid under protest in order to obtain a permit or other approval of development activity.
(5) Each county, city, or town that imposes impact fees shall provide for an administrative appeals process for the appeal of an impact fee; the process may follow the appeal process for the underlying development approval or the county, city, or town may establish a separate appeals process. The impact fee may be modified upon a determination that it is proper to do so based on principles of fairness. The county, city, or town may provide for the resolution of disputes regarding impact fees by arbitration.
[
2011 c 353 s 8
;
2009 c 263 s 1
;
1990 1st ex.s. c 17 s 46
.]
NOTES:
Intent
—
2011 c 353:
See note following RCW 36.70A.130
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
RCW 82.02.080
Impact fees
—
Refunds.
(1) The current owner of property on which an impact fee has been paid may receive a refund of such fees if the county, city, or town fails to expend or encumber the impact fees within ten years of when the fees were paid or other such period of time established pursuant to RCW 82.02.070
(3) on public facilities intended to benefit the development activity for which the impact fees were paid. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The county, city, or town shall notify potential claimants by first-class mail deposited with the United States postal service at the last known address of claimants.
The request for a refund must be submitted to the county, city, or town governing body in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later. Any impact fees that are not expended within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended on the indicated capital facilities. Refunds of impact fees under this subsection shall include interest earned on the impact fees.
(2) When a county, city, or town seeks to terminate any or all impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the county, city, or town shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail to the last known address of claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the local government, but must be expended for the indicated public facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.
(3) A developer may request and shall receive a refund, including interest earned on the impact fees, when the developer does not proceed with the development activity and no impact has resulted.
[
2011 c 353 s 9
;
1990 1st ex.s. c 17 s 47
.]
NOTES:
Intent
—
2011 c 353:
See note following RCW 36.70A.130
.
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
RCW 82.02.090
Impact fees
—
Definitions.
The definitions in this section apply throughout this section and RCW 82.02.050
through
82.02.080
unless the context clearly requires otherwise.
(1) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities. "Development activity" does not include:
(a) Buildings or structures constructed by a regional transit authority; or
(b) Buildings or structures constructed as shelters that provide emergency housing for people experiencing homelessness, or emergency shelters for victims of domestic violence, as defined in RCW 70.123.020
.
(2) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.
(3) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.
(4) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser is considered the owner of the real property if the contract is recorded.
(5) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. An improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town is not considered a project improvement.
(6) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.
(7) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets, roads, and bicycle and pedestrian facilities that were designed with multimodal commuting as an intended use; (b) publicly owned parks, open space, and recreation facilities; (c) school facilities; and (d) fire protection facilities.
(8) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas must be designated on the basis of sound planning or engineering principles.
(9) "Station area" has the same meaning as defined in RCW 36.70A.030
.
(10) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.
[
2025 c 267 s 21
;
2023 c 121 s 2
;
2018 c 133 s 1
. Prior:
2010 c 86 s 1
;
2008 c 42 s 1
;
1990 1st ex.s. c 17 s 48
.]
NOTES:
Findings
—
2025 c 267:
See note following RCW 36.70A.840
.
Finding
—
Intent
—
2023 c 121:
"The legislature finds that increasing numbers of people are utilizing transportation and commuting options that do not primarily involve the use of public roadways. These options include trails designed to allow for transportation and commuting without the use of motorized transport. These transportation and commuting options provide numerous benefits, including a reduction in greenhouse gas emissions and enhanced connection between communities and job centers. The continued expansion of these options requires the construction and use of public facilities for pedestrians and bicyclists.
Currently, however, the resources that local governments can use for these facilities may be limited, and local governments may be unable to use impact fees related to transportation for public facilities outside of public streets and roads. It is the intent of the legislature to provide local governments with increased flexibility in utilizing impact fees in order to provide the funding and facilities necessary for the continued growth and success of such modern commuting options." [
2023 c 121 s 1
.]
Effective date
—
2018 c 133:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect April 1, 2018." [
2018 c 133 s 2
.]
Severability
—
Part, section headings not law
—
1990 1st ex.s. c 17:
See RCW 36.70A.900
and
36.70A.901
.
RCW 82.02.100
Impact fees
—
Exception, mitigation fees paid under chapter
43.21C
RCW.
(1) A person required to pay a fee pursuant to RCW 43.21C.060
for system improvements shall not be required to pay an impact fee under RCW 82.02.050
through
82.02.090
for those same system improvements.
(2) A person installing a residential fire sprinkler system in a single-family home shall not be required to pay the fire operations portion of the impact fee. The exempted fire operations impact fee shall not include the proportionate share related to the delivery of emergency medical services.
[
2011 c 331 s 3
;
1992 c 219 s 2
.]
NOTES:
Intent
—
2011 c 331:
"The legislature recognizes that fire sprinkler systems in private residences may prevent catastrophic losses of life and property, but that financial, technical, and other issues often discourage property owners from installing these protective systems.
It is the intent of the legislature to eradicate barriers that prevent the voluntary installation of sprinkler systems in private residences by promoting education regarding the effectiveness of residential fire sprinklers, and by providing financial and regulatory incentives to homeowners, builders, and water purveyors for voluntarily installing the systems. It is the further intent of the legislature to fully preserve the rulings of
Fisk v. City of Kirkland, 164 Wn.2d 891 (2008),
Stiefel v. City of Kent, 132 Wn. App.523 (2006), and similar cases." [
2011 c 331 s 1
.]
RCW 82.02.110
Impact fees
—
Extending use of school impact fees.
Criteria must be developed by the office of the superintendent of public instruction for extending the use of school impact fees from six to ten years and this extension must require an evaluation for each respective school board of the appropriateness of the extension.
[
2009 c 263 s 2
.]
RCW 82.02.200
Contract to issue conditional federal employer identification numbers, credentials, and documents in conjunction with license applications.
The director may contract with the federal internal revenue service, or other appropriate federal agency, to issue conditional federal employer identification numbers, or other federal credentials or documents, at specified offices and locations of the agency in conjunction with any application for state licenses under chapter
19.02
RCW.
[
1997 c 51 s 6
.]
NOTES:
Intent
—
1997 c 51:
See note following RCW 19.02.300
.
RCW 82.02.210
Washington compliance with streamlined sales and use tax agreement
—
Intent
—
Report.
(1) It is the intent of the legislature that Washington join as a member state in the streamlined sales and use tax agreement referred to in chapter
82.58
RCW. The agreement provides for a simpler and more uniform sales and use tax structure among states that have sales and use taxes. The intent of the legislature is to bring Washington's sales and use tax system into compliance with the agreement so that Washington may join as a member state and have a voice in the development and administration of the system, and to substantially reduce the burden of tax compliance on sellers.
(2) Chapter 168, Laws of 2003 does not include changes to Washington law that may be required in the future and that are not fully developed under the agreement. These include, but are not limited to, changes relating to online registration, reporting, and remitting of payments by businesses for sales and use tax purposes, monetary allowances for sellers and their agents, sourcing, and amnesty for businesses registering under the agreement.
(3) It is the intent of the legislature that the provisions of this title relating to the administration and collection of state and local sales and use taxes be interpreted and applied consistently with the agreement.
(4) The department of revenue shall report to the fiscal committees of the legislature by January 1st of the year immediately following any year during which the streamlined sales and use tax agreement is amended, if legislation is required to keep Washington in compliance with the agreement.
[
2022 c 56 s 3
;
2007 c 6 s 105
;
2003 c 168 s 1
.]
NOTES:
Part headings not law
—
Savings
—
Effective date
—
Severability
—
2007 c 6:
See notes following RCW 82.32.020
.
Findings
—
Intent
—
2007 c 6:
See note following RCW 82.14.390
.
Part headings not law
—
2003 c 168:
See note following RCW 82.08.010
.
RCW 82.02.220
Exclusion of steam, electricity, or electrical energy from definition of certain terms.
When the terms "ingredient," "component part," "incorporated into," "goods," "products," "by-products," "materials," "consumables," and other similar terms denoting tangible items that may be used, sold, or consumed are used in this title, the terms do not include steam, electricity, or electrical energy.
[
2003 c 168 s 701
.]
NOTES:
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.02.230
One statewide rate and one jurisdiction-wide rate for sales and use taxes.
(1) There shall be one statewide rate for sales and use taxes imposed at the state level. This subsection does not apply to the taxes imposed by RCW 82.08.150, 82.12.022, or
82.18.020, or to taxes imposed on the sale, rental, lease, or use of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile homes.
(2) There shall be one jurisdiction-wide rate for local sales and use taxes imposed at levels below the state level. This subsection does not apply to the taxes imposed by chapter
67.28
RCW, RCW 35.21.280, 36.38.010, 36.38.040, *
67.40.090, 82.80.030, or
82.14.360, or to taxes imposed on the sale, rental, lease, or use of motor vehicles, aircraft, watercraft, modular homes, manufactured homes, or mobile homes.
[
2009 c 289 s 3
;
2004 c 153 s 405
;
2003 c 168 s 801
.]
NOTES:
*Reviser's note:
RCW 67.40.090
was repealed by 2010 1st sp.s. c 15 s 14, effective November 30, 2010.
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
Effective dates
—
Part headings not law
—
2003 c 168:
See notes following RCW 82.08.010
.
RCW 82.02.240
Professional employer organizations
—
Liability for certain taxes and fees.
(1) A professional employer organization is not liable for any tax imposed by or under the authority of this title or Title
35
RCW or any other tax, fee, or charge that the department administers based solely on the activities or status of a covered employee having a coemployment relationship with the professional employer organization.
(2) This subsection does not exempt a professional employer organization from:
(a) Any tax imposed by or under the authority of this or any other title based on:
(i) Professional employer services provided by the professional employer organization; or
(ii) The status or activities of employees of the professional employer organization that are not covered employees coemployed with a client; or
(b) The duty to withhold, collect, report, and remit payroll-related and unemployment taxes as required by state law and regulation.
(3) The definitions in RCW 82.04.540
apply to this section.
[
2006 c 301 s 8
.]
NOTES:
Effective date
—
Act does not affect application of Title
50
or
51
RCW
—
2006 c 301:
See notes following RCW 82.32.710
.
RCW 82.02.250
Nexus
—
Requirement to pay taxes and fees.
A person that has a substantial nexus under RCW 82.04.067
is obligated to pay all applicable taxes and fees imposed on that person's business activity, including any taxes and fees enacted after December 31, 2018. For purposes of this section, "taxes and fees" means any monetary exaction, regardless of its label, that is imposed directly on a person engaging in business and that the department is responsible for collecting.
[
2019 c 8 s 104
.]
NOTES:
Effective date
—
2019 c 8 ss 101, 104, 106, 201, 402-405, and 501:
"Sections 101, 104, 106, 201, 402, 403, 404, 405, and 501 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [March 14, 2019]." [
2019 c 8 s 804
.]
Existing rights and liability
—
2019 c 8:
"The repeals and amendments in this act do not affect any existing right acquired or liability or obligation incurred under the statutes repealed or amended, or under any rule or order adopted under those statutes, nor do they affect any proceeding instituted under them." [
2019 c 8 s 801
.]
Retroactive application
—
2019 c 8:
"This act applies prospectively only, except for sections 106 and 201 of this act, which apply both prospectively and retroactively to October 1, 2018." [
2019 c 8 s 803
.]
RCW 82.02.260
Seller obligation to collect sales taxes.
A seller that is obligated to collect the taxes imposed under chapter
82.08
RCW must also collect all other applicable taxes and fees in effect as of January 1, 2020, or enacted after December 31, 2018. For purposes of this section, "taxes and fees" means any monetary exaction, regardless of its label, imposed on a buyer and that the seller is required to collect and pay over to the department.
[
2019 c 8 s 107
.]
NOTES:
Effective date
—
2019 c 8 ss 102, 103, 107, and 701-703:
See note following RCW 82.04.067
.
Existing rights and liability
—
Retroactive application
—
2019 c 8:
See notes following RCW 82.02.250
.