2008 Budget Book - Kitsap County Government

Other Funds
Real Estate Excise Tax Fund
Within Washington State, transfers of real property are subject to state and local real estate excise taxes
(REET). The total rate in Kitsap County is 1.78% of the value of the transfer. Of this, 1.28% goes to the
State and 0.50% goes to the County.
For example: If a home sold for $100,000, then the total real estate excise tax on this transfer would be
$1,780, the State’s portion would be $1,280, and the County’s portion would be $500.
REET is generally paid by the seller and is a highly volatile revenue source which reacts strongly to
fluctuations in the economy and real estate market.
Real estate excise taxes can only be used to pay for public works projects and for planning, acquistion,
construction, reconstruction, repair, replacement, rehabilitation or improvement of:
• Streets
• Roads
• Highways
• Sidewalks
• Street and road lighting systems
• Traffic signals
• Bridges
• Domestic water systems
• Storm and sanitary sewer systems
• Parks
• Recreational facilities
• Law enforcement facilities
• Trails
• Libraries
• Administrative or judicial facilities
• River and/or waterway flood control projects
We use REET primarily to pay debt service on large capital projects like upgrades to our current
courthouse. Expenses in the Real Estate Excise Tax Fund for 2008 are listed below:
Payment For Amount Purpose
Professional Services $ 10,000 Design & Engineering
Capital Outlay 1,942,573 Improvement & Land Purchases
1996 Refunding Bonds 860,086 Debt Service
1999B Refunding Bonds 153,684 Debt Service
2001 Refunding Bonds 284,240 Debt Service
2003B LTGO Bonds 907,154 Debt Service
2004 LTGO Bonds 1,219,076 Debt Service
Marine Science Ctr Debt Service 23,265 Agreement with Poulsbo
Government Center Bonds 353,944 Agreement with Bremerton
2006 LTGO Bonds 1,209,036 Debt Service
Road Projects 1,000,000 Road Construction
Total REET Budget $ 7,963,058
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