All sales of real estate are taxed at 1.78%, of which the city receives 0.5%, and 1.28% goes towards state funding of K-12 education and public works assistance as defined in RCW 82.45. The Pierce County Treasurer collects the real estate excise tax and places 1% of the tax collected in the County Current Expense Fund to cover the costs of collection. The remaining 99% of real estate excise tax collected by Pierce County is then remitted to the city on a monthly basis. Excise tax collected may be used for the financing of capital projects as defined in RCW 82.46.010(6).
Real estate excise tax is the obligation of the seller of real property and is due and payable immediately at the time of sale. If the tax is not paid within 30 days of the sale, interest will be charged at the maximum rate permitted by law from the time of sale until the date of payment.