reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-109 - Trading/exchanging property and boundary line adjustments

Current through Register Vol. 24-14, July 15, 2024
(1)
Trading/exchanging property.
The real estate excise tax applies when real property is conveyed in exchange
				for other real property or any other valuable property. The real estate excise
				tax is due on the true and fair value for each individual property.
(2)
Boundary line adjustments.
(a)
Introduction.
A boundary
				line adjustment is a legal method to make minor changes to existing property
				lines between two or more contiguous parcels. Real estate excise tax may apply
				depending upon the specific circumstances of the transaction. Boundary line
				adjustments include, but are not limited to, the following:
(i) Moving a property line to follow an
				existing fence line;
(ii) Moving a
				property line around a structure to meet required setbacks;
(iii) Moving a property line to remedy a
				boundary line dispute;
(iv) Moving
				a property line to adjust property size and/or shape for owner convenience;
				and
(v) Selling a small section of
				property to an adjacent property owner.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-110 - Relocation service - Two-deed process

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real
				estate excise tax applies to property transfers involving the two-deed process
				or delivery of a deed, blank as to the grantee, but otherwise
				complete.
(2)
Delivery to
				third party.
The subsequent delivery of the deed to a third person named
				as grantee for consideration is also a taxable sale.
(3)
Examples.
The following
				examples identify a number of facts and then state a conclusion. These examples
				are provided as a general guide. The status of each situation must be
				determined after a review of all of the facts and circumstances.
(a) Bob lists his house with a realtor under
				an agreement that if the house does not sell within four months, the realtor
				will purchase the house from Bob at the agreed price. Bob intends to purchase a
				house listed with that realtor and needs the funds from the sale of his house
				to use as a payment for the new house. Bob's house does not sell within the
				four-month period so the realtor purchases Bob's house. Bob executes a blank
				deed and gives it to the realtor, authorizing the realtor to insert the
				grantee's name when the realtor eventually resells the house. Real estate
				excise tax is due on both transfers. Bob owes real estate excise tax on the
				selling price of the house at the time he transfers the house to the realtor.
				The realtor owes real estate excise tax on the selling price of the house upon
				sale to the final buyer.
(b) PSP
				Corporation contracts with a relocation company to handle the sale of homes for
				its employees that are relocating. The employee transfers the property to the
				relocation company. The relocation company delivers the deed to an escrow
				company who holds the deed until the relocation company finds a buyer. Real
				estate excise tax is due on both transfers. Tax is due when the employee
				transfers the deed to the relocation company. Real estate excise tax is due on
				the second transfer when the relocation company transfers the property to the
				buyer.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-111 - Easements, development rights, water rights, and air rights

Current through Register Vol. 24-14, July 15, 2024
(1)
Easements.
The real estate excise tax applies to the conveyance of
				an easement for the use of real property in return for valuable consideration.
				The real estate excise tax affidavit is required only if the transfer is
				taxable.
(2)
Development
				rights, water rights, and air rights.
(a) The real estate excise tax applies to the
				sale of development rights, water rights, and air rights. The measure of the
				tax is the total consideration received in exchange for the transfer of the
				right. The real estate excise tax affidavit must be completed for the transfer
				of development rights, water rights, and air rights regardless of whether a
				taxable sale has occurred.
(b)
"Development rights"
means transferable rights to the unused
				development on a parcel of land measured by the difference between the existing
				development density on the parcel and the density allowed by applicable zoning
				laws.
(c)
"Water
				rights"
means transferable rights to the diversion, extraction or use of
				water arising by virtue of the ownership of land located contiguous to surface
				water, a water right claim, or the possession of a water right permit or
				certificate issued by the department of ecology.
(d)
"Air rights"
means the
				exclusive undisturbed use and control of a designated air space within the
				perimeter of a stated land area and within stated elevations.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-112 - Mineral rights and mining claims

Current through Register Vol. 24-14, July 15, 2024
(1)
When tax is imposed.
A conditional sale of mining property in
				which the grantee has the right to terminate the contract at any time, and a
				lease and option to buy mining property in which the lessee/grantee has the
				right to terminate the lease and option at any time, is taxable at the time of
				execution on the amount of the consideration paid to the grantor/lessor for
				execution of the contract. The tax due on any additional consideration paid by
				the grantee and received by the grantor is paid to the county upon the first
				occurrence of the following events:
(a) The
				time of termination;
(b) The time
				that all of the consideration due to the grantor has been paid and the
				transaction is completed except for the delivery of the deed to the grantee;
				or
(c) The time when the grantee
				unequivocally exercises an option to purchase the property.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-113 - Timber, standing

Current through Register Vol. 24-14, July 15, 2024
(1) The real
				estate excise tax applies to the sale of timber if the ownership of the timber
				is transferred while the timber is standing. The tax applies to the sale of
				standing timber whether the sale is accomplished by deed or by contract. See
				also chapters 84.33 RCW and 458-40 WAC for specific regulations and rules
				regarding the taxation of timber and forest land.
(2) The grantor's irrevocable agreement to
				sell timber and pass ownership to it as it is cut is a taxable transaction if
				the total amount of the sale is specified in the original contract.
(3) A contract to transfer the ownership of
				timber after it has been cut and removed from land by the grantee is not a
				taxable transaction.
(4) A contract
				between a timber owner and a harvester under which the harvester provides the
				service of cutting the timber and transporting it to the mill is not subject to
				the real estate excise tax if the timber owner retains ownership of the timber
				until it is delivered to and purchased by the mill.
(5) Notwithstanding the above subsections, a
				sale of standing timber is exempt from real estate excise tax if the gross
				income from the sale is subject to business and occupation tax under
				RCW
				82.04.260(12)(d).
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-113, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-200 - Exemptions and exclusions

Current through Register Vol. 24-14, July 15, 2024
Introduction.
There are limited exemptions or
				  exclusions from the real estate excise tax provided by law. WAC
				  458-61A-201 through
				  458-61A-217 discuss exemptions
				  and the procedures that must be followed to qualify for an
				  exemption.
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-200, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-201 - Gifts

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Generally, a gift of real property is not a sale,
				and is not subject to the real estate excise tax. A gift of real property is a
				transfer for which there is no consideration given in return for granting an
				interest in the property. If consideration is given in return for the interest
				granted, then the transfer is not a gift, but a sale, and it is subject to the
				real estate excise tax to the extent of the consideration received.
(2)
Consideration.
See WAC
				458-61A-102 for the definition of
				"consideration." Consideration may also include:
(a) Monetary payments from the grantee to the
				grantor; or
(b) Monetary payments
				from the grantee toward underlying debt (such as a mortgage) on the property
				that was transferred, whether the payments are made toward existing or
				refinanced debt.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-202 - Inheritance or devise

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Transfers of real property through a devise by will
				or inheritance are not subject to the real estate excise tax. For the purpose
				of this exemption, it does not matter whether the real property transferred was
				encumbered by underlying debt at the time it was inherited or
				devised.
(2)
Definitions.
For the purposes of this rule, the following
				definitions apply:
(a) "Heir" means a person,
				including the surviving spouse or surviving domestic partner, who is entitled
				under the statutes of intestate succession to the real and personal property of
				a decedent on the decedent's death intestate;
(b) "Lack of probate affidavit" means a
				signed and notarized document declaring that the affiant or affiants are the
				rightful heir or heirs to the property and containing the following
				information:
(i) The names of the affiant or
				affiants;
(ii) The relationship of
				the affiant or affiants to the decedent;
(iii) The names of all other heirs of the
				decedent living at the time of the decedent's death;
(iv) A description of the real
				property;
(v) Whether the decedent
				left a will that includes a devise of real property; and
(vi) Any other information the department may
				require.
(c) "Nonpro rata
				distribution" is a distribution in which the transfer of real property to the
				heirs or devisees may not be in proportion to their interests.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-203 - Community property, dissolution of marriage or domestic partnership, legal separation, decree of invalidity

Current through Register Vol. 24-14, July 15, 2024
(1)
Community property.
Transfers from one spouse or domestic partner
				to the other that establish or separate community property are not subject to
				the real estate excise tax.
(2)
Court decree.
The real estate excise tax does not apply to any
				transfer, conveyance, or assignment of property or interest in property from
				one spouse or domestic partner to the other in fulfillment of a settlement
				agreement incident to a decree of dissolution, declaration of invalidity, or
				legal separation.
(3)
Transfers to third parties.
A sale of real property by either one
				or both spouses or domestic partners to a third party is subject to the real
				estate excise tax, regardless of whether the sale is pursuant to the terms of a
				decree of dissolution, declaration of invalidity, or legal
				separation.
(4)
Former
				spouses or domestic partners.
Transfers of real property between
				ex-spouses or former domestic partners that are independent of any settlement
				agreement incident to their decree of dissolution or decree of invalidity are
				subject to the real estate excise tax, unless otherwise exempt under this
				chapter.
Statutory Authority:
					 RCW
					 82.45.150. 08-24-095, § 458-61A-203,
					 filed 12/2/08, effective 1/2/09. Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-203, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-204 - Tenants in common and joint tenants

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real estate excise tax does not apply to the
				transfer of real property that results in the creation of a tenancy in common
				or joint tenancy with or without right of survivorship if no consideration
				passes otherwise. See WAC
				458-61A-201, Gifts.
(2)
Partition.
The partition of
				real property by tenants in common or joint tenants, by agreement or as the
				result of a court decree, is not subject to real estate excise tax. A partition
				results when tenants in common agree that certain tenants will be assigned
				certain particular tracts within the property that they own together. Transfers
				to partition real property are not subject to the real estate excise tax
				provided that the transfer is without additional consideration
				passing.
(3)
Examples.
The following examples, while not exhaustive, illustrate some of the
				circumstances in which a grant of an interest in real property may qualify for
				this exemption. These examples should be used only as a general guide. The
				taxability of each transaction must be determined after a review of all the
				facts and circumstances.
(a) Betsy, Haley, and
				Kalli own five riverfront parcels as tenants in common. One parcel is worth
				twice as much as any of the others, which are all equivalent in value. The
				property is partitioned. Betsy receives the especially valuable parcel; Haley
				and Kalli receive two parcels each. No real estate excise tax is due, since the
				partition of the property is by agreement and no additional consideration
				passed between the parties.
(b)
				David and Corwin are business partners; they own two parcels of real estate as
				tenants in common. One parcel is valued at $200,000 and has an underlying debt
				of $175,000. The other parcel is valued at $25,000 and has no underlying debt.
				Pursuant to a proceeding to liquidate their partnership, the court orders
				partition of the real property. David receives the more valuable parcel and
				assumes full responsibility for the debt. Corwin receives the less valuable
				parcel. No real estate excise tax is due, because the partition of the property
				is pursuant to a court order.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-205 - Governmental transfers

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Transfers of real property from a governmental
				entity are not subject to the real estate excise tax. Transfers of real
				property to a governmental entity are subject to real estate excise tax unless
				specifically exempted under this chapter. A completed real estate excise tax
				affidavit is required for transfers both to and from a governmental entity. In
				claiming the exemption, the affidavit must state as a reason for the exemption
				which constitutional provision or authorizing statute provides that the
				transferor is a governmental entity.
(2)
Government seller.
A
				governmental entity selling real property is exempt from the real estate excise
				tax.
(3)
Government
				purchaser.
Generally, a seller that is not a governmental entity must
				pay real estate excise tax on voluntary sales of real property to a
				governmental entity unless the transfer is otherwise exempt under this chapter.
				See WAC 458-61A-206 regarding transfers
				pursuant to condemnation proceedings or under threat of the exercise of eminent
				domain.
(4)
Transfers for a
				public purpose.
Transfers to a governmental entity for a public use in
				connection with the development of real property by a developer when the
				transfer is required for plat approval are not subject to the real estate
				excise tax. For example, a developer who deeds property to the city for streets
				and utilities is not subject to real estate excise tax on the
				transfer.
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-205, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-206 - Condemnation proceedings

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Transfers of real property to a governmental entity
				under an imminent threat of the exercise of eminent domain, a court judgment or
				settlement with a governmental entity based upon a claim of inverse
				condemnation, or as a result of the actual exercise of eminent domain, are not
				subject to the real estate excise tax.
(2)
Transfer must be to a governmental
				entity.
To qualify for this exemption, the threat of condemnation or the
				exercise of eminent domain must be made by a governmental entity with the
				actual power to exercise eminent domain.
(3)
Threat to exercise eminent domain
				must be imminent.
To qualify for this exemption, the governmental entity
				must have either filed condemnation proceedings against the seller/grantee; or:
(a) The governmental entity must have
				notified the seller in writing of its intent to exercise its power of eminent
				domain prior to the sale; and
(b)
				The governmental entity must have the present ability and authority to use its
				power of eminent domain against the subject property at the time of sale;
				and
(c) The governmental entity
				must have specific statutory authority authorizing its power of eminent domain
				for property under the conditions presented.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-207 - Bankruptcy

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real estate excise tax does not apply to the
				transfer of real property by a trustee in bankruptcy or debtor in possession
				made after the plan is confirmed under a chapter 11 or chapter 12 plan. Federal
				law preempts real estate excise tax on these transfers.
(2)
Documentation .
In order to
				claim this exemption, a copy of the Order of Confirmation or an extract from
				the Confirmed Bankruptcy Plan, showing the date the bankruptcy plan was
				confirmed, the court case cause number, and the bankruptcy chapter number, must
				be available and provided to the county treasurer or the department upon
				request.
Statutory Authority: [RCW
					 82.32.300,
					 82.45.150, and
					 82.01.060(2) ].
					 06-15-021, § 458-61A-207, filed 7/7/06, effective 8/7/06; 05-23-093,
					 § 458-61A-207, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-208 - Transfers pursuant to deeds of trust, foreclosure proceedings, executions of a judgment, deeds in lieu of foreclosure, and contract forfeiture

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real estate excise tax does not apply to any transfer
				or conveyance made pursuant to:
(a) A deed of
				trust in a foreclosure proceeding;
(b) An order of sale by a court in any
				mortgage, deed of trust, or lien foreclosure proceeding;
(c) An execution of a judgment as provided in
				chapters 6.17 and 6.21 RCW;
(d) A
				deed in lieu of foreclosure to satisfy a mortgage or deed of trust;
				or
(e) A cancellation or forfeiture
				of a vendee's interest in a contract for the sale of real property.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-209 - Rescission of sale

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The reconveyance of property due to a rescission of
				sale is not subject to the real estate excise tax.
(2)
Consideration must be repaid to
				buyer.
To qualify for exemption under this rule, all consideration paid
				toward the selling price must be returned by the seller to the buyer at the
				time of the reconveyance.
(a) A seller may
				retain interest paid by the buyer without disqualifying the
				exemption.
(b) The payment of a
				reasonable reimbursement for site improvements will not disqualify the
				exemption.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-210 - Irrevocable trusts

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The distribution of real property to the
				beneficiaries of an irrevocable trust is not subject to the real estate excise
				tax if no valuable consideration is given for the transfer and the distribution
				is made according to the trust instrument.
(2)
Transfer into trust.
A
				transfer of real property to an irrevocable trust is subject to the real estate
				excise tax if:
(a) The transfer results in a
				change in the beneficial interest and not a mere change in identity or
				ownership; and
(b) There is
				valuable consideration for the transfer.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-212 - Transfers where gain is not recognized under the Internal Revenue Code

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
A transfer that, for federal income tax purposes,
				does not involve the recognition of gain or loss for entity formation,
				liquidation or dissolution, and reorganization, is not subject to the real
				estate excise tax.
(2)
Internal Revenue Code sections.
This exemption includes, but is
				not limited to, nonrecognition of loss or gain under the following sections of
				the Internal Revenue Code of 1986:
(a) Section
				332 - Corporate liquidations - Complete liquidations of subsidiaries.
(b) Section 337 - Corporate liquidations -
				Nonrecognition for property distributed to parent in complete liquidation of
				subsidiary.
(c) Section 351 -
				Corporate organizations and reorganizations - Transfer to corporation
				controlled by transferor.
(d)
				Section 368(a)(1) - Corporate organizations and reorganization - Definitions
				relating to corporate reorganizations - Reorganizations - In general.
(e) Section 721 - Partners and partnerships -
				Nonrecognition of gain or loss on contribution.
(f) Section 731 - Partners and partnerships -
				Extent of recognition of gain or loss on distribution.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-213 - IRS "tax deferred" exchange

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule describes the application of the real
				estate excise tax in transfers involving an exchange facilitator. An "exchange
				facilitator" is a person who acts as an agent on behalf of another person in
				connection with an exchange of real property under section 1031 of the Internal
				Revenue Code of 1986 (section 1031 tax deferred exchange).
(2) Acquisition of property by an exchange
				facilitator in connection with a section 1031 tax deferred exchange is subject
				to the real estate excise tax.
(3)
				The later transfer of the property by the facilitator in completion of the
				exchange is subject to real estate excise tax, unless the following
				requirements are met:
(a) The proper tax was
				paid on the initial transaction;
(b) A supplemental statement signed by the
				exchange facilitator, as provided by WAC
				458-61A-304, is attached to the
				real estate excise tax affidavit indicating that the facilitator originally
				took title to the property for the sole purpose of effecting a section 1031 tax
				deferred exchange; and
(c) The
				funds used by the exchange facilitator to acquire the property were provided by
				the grantee and/or received from the proceeds of the sale of real property
				owned by the grantee.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-214 - Nominee

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule describes the application of the real
				estate excise tax in transfers involving a nominee. A "nominee" is a person who
				acts as an agent on behalf of another person in the purchase of real property.
(a) This rule includes examples that identify
				a set of facts and then state a conclusion. These examples are only a general
				guide. The department of revenue (department) will evaluate each case on its
				particular facts and circumstances.
(b) In addition to this rule, readers may
				want to refer to WAC
				458-61A-213
				IRS "tax deferred" exchange.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-215 - Clearing or exiting title, and additions to title

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real
				estate excise tax does not apply to quitclaim deeds given for the sole purpose
				of clearing title if no consideration passes otherwise. This rule does not
				apply to deeds executed for the purpose of adding persons to title, except in
				cases of persons added to title for co-signing security purposes
				only.
(2)
Examples.
The following examples, while not exhaustive, illustrate some of the
				circumstances in which a transfer of real property may or may not qualify for
				exemption under this rule. These examples should be used only as a general
				guide. The taxability of each transaction must be determined after a review of
				all the facts and circumstances.
(a) An
				exiting minority partner gives the partnership a quitclaim deed for the purpose
				of removing any presumptive interest. This transfer is exempt from real estate
				excise tax under this rule.
(b) An
				heir to an estate gives the estate a quitclaim deed for the purpose of removing
				any presumptive interest they have in the estate. This transfer is exempt under
				this rule.
(c) A developer deeds
				greenbelts, streets or common areas in a development to the homeowners
				association upon completion of the development and under the terms and
				covenants of the development. This transfer is exempt under this
				rule.
(d) Joseph owns a residence
				and goes to a bank to refinance. His credit is not good enough to obtain the
				new loan in his name only, but he can qualify if he obtains a
				co-signor/co-borrower. Joseph's parents agree to co-sign the loan. The bank
				requests that the parents also go on title with Joseph, and he quitclaims a
				half interest to his parents. Although the deed may be phrased as a gift to his
				parents, the deed acts as a security interest for his parents in the event
				Joseph defaults. The addition of Joseph's parents to the title is exempt under
				this rule, provided Joseph makes all the mortgage payments, and Joseph receives
				no consideration from his parents for the transfer.
(e) The parents described in (d) of this
				subsection who have been on title with their child are now issuing a quitclaim
				deed to Joseph to exit title. Joseph has now paid off or refinanced the
				mortgage in his name only. The parents' intention was to go on title as
				"co-signors" only, not as co-purchasers of the property, and they have not made
				any payments toward the repayment of the loan. This transfer is exempt under
				this rule.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-216 - Mortgage insurers

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The transfer of real property from a mortgage lender
				to the Veterans Administration or Federal Housing Authority is an exempt
				transaction.
(2) The transfer of
				real property from a mortgage lender to another private insurer or guarantor in
				settlement of an insurance claim is a taxable transaction.
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-216, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-217 - Rerecord

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The rerecording of documents to correct a legal
				description, change contract terms, or correct the spelling of the name of a
				party to the transaction, is not subject to the real estate excise
				tax.
(2)
Documentation
				required.
An affidavit is required for the rerecording. The affidavit
				must refer to the prior affidavit number and the recorded document number for
				the prior transaction, and must include a complete explanation of why the
				rerecording is necessary.
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-217, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-218 - Low income housing

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Transfers of qualified low-income housing
				developments are not subject to the real estate excise tax. Transfers of
				controlling interests in qualified low-income housing developments are also not
				subject to the real estate excise tax. The real estate excise tax does apply to
				such transfers if, due to noncompliance with federal statutory requirements,
				the seller is subject to recapture, in whole or in part, of its allocated
				federal low-income housing tax credits within the four years prior to the date
				of transfer.
				RCW
				82.45.010(3).
(2)
Definition.
For purposes of
				this section, "qualified low-income housing development" means real property
				and improvements in respect to which the seller or, in the case of a transfer
				of a controlling interest, the owner or beneficial owner, was allocated federal
				low-income housing tax credits. These are tax credits authorized under 26
				U.S.C. Sec. 42, or a successor statute, and allocated by the Washington state
				housing finance commission.
(3)
Expiration.
This section does
				not apply to transfers of, or transfers of controlling interests in, qualified
				low-income housing developments occurring on or after July 1, 2035.
(4)
Refund limitation.
Refunds
				are not authorized for any tax liability imposed or authorized under chapter
				82.45 or 82.46 RCW, and properly paid before July 1, 2018, with respect to a
				transfer of qualified low-income housing as defined in
				RCW
				82.45.010(3)(s).
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › EXEMPTIONS AND EXCLUSIONS › Section 458-61A-219 - Developmentally disabled persons-Housing-Transfers and improvements

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
A transfer of real property by a legal
				representative of a person with a developmental disability to a qualified
				entity as defined in
				RCW
				82.45.010(3)(t)(iii) is not
				subject to the real estate excise tax if certain conditions are met and no
				consideration passes in the transfer. This rule explains the eligibility and
				continued use requirements, and provides documentation requirements for persons
				who make qualifying transfers of real property described in
				RCW
				82.45.010(3)(t).
(2)
Other rules that may apply.
Readers may want to refer to other rules for additional information, including:
(a) WAC
				458-61A-100
				Real estate excise tax-Overview.
(b) WAC
				458-61A-102
				Definitions.
(c) WAC
				458-61A-201
				Gifts.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-1001 - Graduated real estate excise tax rates-Exceptions to graduated rates-Tax avoidance arrangements

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains how the graduated real estate
				excise tax rates apply to transactions subject to real estate excise tax
				(REET). See chapter 82.45 RCW. The rule also explains when and how the tax
				rates change over time. In addition to the REET discussed in this rule, a sale
				of real property may also be subject to an excise tax imposed by a county or
				city. See
				RCW
				82.46.010.
(2)
Other rules that may apply.
Readers may want to refer to other rules for additional information, including:
(a) WAC
				458-30-200
				Definitions.
(b) WAC
				458-61A-100
				Real estate excise tax-Overview.
(c) WAC
				458-61A-101
				Taxability of the transfer or acquisition of the controlling interest of an
				entity with an interest in real property located in this state.
(d) WAC
				458-61A-102
				Definitions.
(e) WAC
				458-61A-301
				Payment of tax, collection responsibility, audit responsibility, and tax
				rulings.
(f) WAC
				458-61A-303
				Affidavit.
(g) WAC
				458-61A-306
				Date of sale, interest, and penalties.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-300 - Collection and administration

Current through Register Vol. 24-14, July 15, 2024
Introduction.
Real estate excise tax is levied
				  by the state under
				  chapter
				  82.45 RCW and by counties
				  under chapter 82.46 RCW. The general provisions for the administration of the
				  state's excise taxes contained in
				  chapter
				  82.32 RCW apply to the
				  real estate excise tax, except as provided in
				  RCW
				  82.45.150. This section describes the
				  applicable procedures for payment, collection, disposition of proceeds,
				  requests for refunds, penalties, record keeping requirements, requests for
				  rulings, and other administrative processes.
Statutory Authority:
					 RCW
					 82.32.300,
					 82.01.060(2), and
					 82.45.150. 05-23-093, §
					 458-61A-300, filed 11/16/05, effective
					 12/17/05.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-301 - Payment of tax, collection responsibility, audit responsibility, and tax rulings

Current through Register Vol. 24-14, July 15, 2024
(1)
Tax
				imposed.
(a) The taxes imposed are due
				at the time the sale occurs and are collected by the county when the documents
				of sale are presented for recording or, in the case of a transfer of a
				controlling interest (see WAC
				458-61A-101 ), by the
				department.
(b) The tax is imposed
				upon the seller. Effective May 1, 2010, the parent corporation of a wholly
				owned subsidiary is the seller, if the subsidiary sells to a third party and
				the subsidiary is dissolved before paying the tax.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-303 - Affidavit

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section explains when a real estate excise tax
				affidavit is required for the transfer of real property. See WAC
				458-61A-101 for procedures
				pertaining to transfers and acquisitions of a controlling interest in an entity
				owning real property in the state of Washington.
(2)
Affidavit required.
In
				general, an affidavit must be filed when ownership or title to real property
				transfers as evidenced by conveyance, deed, grant, assignment, quitclaim, or
				any other document effectuating the transfer including, but not limited to, the
				following:
(a) Transfer establishing or
				separating community property, or in fulfillment of a settlement agreement
				incident to a dissolution of marriage, legal separation, or declaration of
				invalidity, or in fulfillment of a community property agreement under
				RCW
				26.16.120;
(b) Transfer resulting from a court
				order;
(c) Transfer to secure a
				debt;
(d) Transfer of a taxable
				easement;
(e) A deed in lieu of
				foreclosure of a mortgage;
(f) A
				deed in lieu or declaration of forfeiture of a real estate contract;
(g) Transfer to an heir in the settlement of
				an estate;
(h) Transfer to or from
				the United States, the state of Washington, or any political subdivision or
				municipal corporation of this state;
(i) Transfer of development rights, water
				rights, or air rights;
(j) Transfer
				of leasehold improvements;
(k)
				Boundary line adjustments;
(l)
				Rerecording a document to correct a minor error, such as the legal description
				or spelling of a name; or
(m)
				Transfer pursuant to a previously recorded transfer on death deed when the
				beneficiary(ies) perfect title by recording a certified copy of the
				transferor's death certificate.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-304 - Supplemental statements

Current through Register Vol. 24-14, July 15, 2024
(1) The
				department will provide the county with a uniform multiuse supplemental
				statement form for use in meeting the requirements of the following sections of
				this chapter:
(a) WAC
				458-61A-306, Date of sale,
				interest, and penalties;
(b) WAC
				458-61A-201, Gifts; and
(c) WAC
				458-61A-213, IRS "tax deferred"
				exchange.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-305 - Trade-in credit

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
When a single-family residential property is
				transferred as either partial or entire consideration for the purchase of
				another single-family residential property, a credit for the amount of the real
				estate excise tax paid at the time of the first transfer is allowed toward the
				amount of the real estate excise tax due upon the later transfer of the same
				property.
(2)
Refund not
				available.
The later transfer must be made within nine months of the
				original transfer for the credit to be allowed. If the tax that would be due on
				the later transfer is greater than the tax paid for the first transfer, the
				difference must be paid. However, if the tax paid on the first transfer is
				greater than that due on the second transfer, no refund of tax paid will be
				allowed.
(3) The trade-in credit is
				allowed toward the later sale of the residence "brought in" on trade, not
				toward the tax liability of the sale of the residence for which it was traded.
				The affidavit upon which the trade-in credit is claimed must show all of the
				following:
(a) The transaction date and prior
				affidavit number where the tax was paid on the original (trade-in)
				transaction;
(b) The county
				auditor's recorded document number for the original transaction, if such was
				recorded; and
(c) The disclosure
				that both properties involved in the original trade-in transaction are
				single-family dwellings.
For example, Bob is selling real property in Sun City. Alex
				  wants to buy Bob's property, but he needs to sell his property in Smokey
				  Hollow. Both the Sun City property and the Smokey Hollow property are
				  single-family residential properties. Bob agrees to buy Alex's Smokey Hollow
				  property for $175,500 and Alex agrees to buy Bob's Sun City property for
				  $210,000. Real estate excise tax is paid on the full sales price of both
				  properties. Three months later, Bob sells the Smokey Hollow property to Sally
				  for $180,000. Bob receives a credit on the sale to Sally for the tax paid on
				  the previous sale of the Smokey Hollow property.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › COLLECTION AND ADMINISTRATION › Section 458-61A-306 - Date of sale, interest, and penalties

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule
				explains how to determine the date of sale and explains the application of
				interest and penalties when the tax is not paid within one month of the date of
				sale. See WAC
				458-61A-101 for procedures
				pertaining to transfers and acquisitions of a controlling interest in an entity
				owning real property in the state of Washington.
(2)
Date of sale.
Real estate
				excise tax is due and payable to the county on the date of sale, regardless of
				the date on which the contract of sale or instrument of conveyance is recorded.
(a)
Conditions to be fulfilled prior to
				completing sale.
When a contract of sale or instrument of conveyance is
				signed and delivered by the seller to an escrow agent licensed under chapter
				18.44 RCW (Escrow Agent Registration Act), a title company, a title insurance
				company, or an attorney acting as an escrow agent, with instructions to deliver
				the instrument to the buyer upon the fulfillment of one or more conditions that
				had prevented the sale from being completed, the date of sale will be presumed
				to be the date that the instrument is presented for recording, subject to the
				following:
(i) A statement, signed by the
				seller's agent, is attached to the affidavit indicating the specific conditions
				that had to be met in order for the sale to be completed;
(ii) The date shown on the instrument cannot
				be more than ninety days prior to the date the affidavit is presented to the
				county treasurer for filing; and
(iii) All documentation required by the
				department must be provided to the county agent when submitting the affidavit
				claiming an exemption from interest and penalty pursuant to this
				rule.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-65A - Unclaimed property › Section 458-65A-10001 - Brief adjudicative proceedings for matters related to penalties and interest imposed under the Revised Uniform Unclaimed Property Act, chapter 63.30 RCW

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The department of revenue (department) conducts
			 adjudicative proceedings pursuant to chapter 34.05 Revised Code of Washington
			 (RCW), the Administrative Procedure Act (APA). The department will use a brief
			 adjudicative proceeding as provided in
			 RCW
			 34.05.482 through
			 34.05.494 to determine the
			 following issues:
(a) Whether a holder is
			 liable for accrued interest for failure to pay or deliver property to the
			 department;
(b) Whether a holder is
			 subject to the 10 percent penalty for failure to timely file a report or pay or
			 deliver any amounts or property due under a report;
(c) Whether a holder is subject to the 10
			 percent penalty for an assessment following an examination, of amounts unpaid
			 or property not delivered;
(d)
			 Whether a holder is subject to the five percent penalty for failure to timely
			 pay or deliver property due under an assessment; and
(e) Whether a holder is subject to the five
			 percent penalty for failing to electronically file a report or pay
			 electronically.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-276 - Access to public records › Section 458-276-010 - Authority and purpose of access to public records

Current through Register Vol. 24-14, July 15, 2024
(1) The purpose of the Public Records Act,
			 chapter
			 42.56 RCW, is to provide
			 for the public's access to information concerning the conduct of government.
			 The purpose of these rules in this chapter is to establish the procedures the
			 department of revenue (department) will follow in order to provide this access
			 to nonexempt public records. These rules provide information to persons
			 requesting access to public records of the department and establish processes
			 for both requestors and department staff that are designed to assist members of
			 the public in obtaining access.
(2)
			 In carrying out its responsibilities under the Public Records Act, the
			 department must give due regard to the applicable statutory exemptions or
			 limitations from disclosure described in WAC 458-276-045.
Statutory Authority: RCW 42.17.250. 78-02-064 (Order GT
				  78-1), § 458-276-010, filed
				  1/23/78.