A. Imposition. There is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW and occurring within the corporate limits of the city. The tax imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapter 82.45 RCW.

B. Rate of Tax. The rate of tax imposed by subsection A of this section shall be one-quarter of one percent of the selling price of all real property upon which the tax is imposed by subsection A.

C. Use of Proceeds. All proceeds from the tax imposed by this section shall be placed by the city treasurer in a capital improvement fund and shall be used primarily for financing capital projects specified in a capital facilities plan element of a comprehensive plan approved by the city council and for other purposes as authorized by law; provided, however, revenues committed prior to July 1, 1990 to a capital project may continue to be used for that purpose until the project is completed. (Ord. 587 § 1, 1990; Ord. 473 § 1, 1985).