reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-50 - Intercounty utilities and transportation companies-Assessment and taxation › Section 458-50-170 - Valuation principles

Current through Register Vol. 24-14, July 15, 2024
(1)
What
			 is meant by "true and fair value"?
One hundred percent of true and fair
			 value is the standard used by assessing officials for valuing both taxable
			 property and exempt property. True and fair value is the same as market value
			 or fair market value. It is the amount of money a buyer of property willing but
			 not obligated to buy would pay a seller of property willing but not obligated
			 to sell, taking into consideration all uses to which the property is adapted
			 and might in reason be applied. This term incorporates all the rights and
			 benefits, present and future, associated with the ownership of
			 property.
(2)
Approaches to
			 value.
All three traditional and generally accepted approaches to value
			 may be used by assessing officials. These approaches are cost, including the
			 actual cost new or historical cost less depreciation, the cost of reproduction
			 new less any depreciation, the cost of replacement new less any depreciation;
			 income, including the past, present, and prospective gross and net earnings of
			 the whole system as a unit; and comparable sales (commonly called "market"),
			 including, but not limited to, a technique known as the stock and debt method
			 that considers the par value, actual value and market value of the company's
			 outstanding stocks and bonds during one or more preceding years.
(3)
Generally accepted appraisal
			 practices.
"Generally accepted appraisal practices" are the appropriate
			 application in the valuation of real, and tangible and intangible personal
			 property, of accepted standards of professional appraisal practice as described
			 in the Uniform Standards of Professional Appraisal Practice issued by the
			 Appraisal Standards Board of the Appraisal Foundation or the accepted standards
			 of other nationally recognized professional appraisal organizations.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070, and
				  84.36.865. 06-24-043, §
				  458-50-170, filed 11/30/06, effective
				  12/31/06.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-50 - Intercounty utilities and transportation companies-Assessment and taxation › Section 458-50-190 - Valuation of particular assets

Current through Register Vol. 24-14, July 15, 2024
(1)
Computer software.
Computer software is generally exempt from
			 property taxation. The exemption is specifically dealt with in
			 RCW
			 84.36.600 (exemption),
			 RCW
			 84.04.150 (definitions), and WAC
			 458-12-251. Computer software and
			 embedded software is valued in accordance with
			 RCW
			 84.40.037.
			 RCW
			 84.36.070 and these rules (WAC
			 458-50-150 through
			 458-50-190 ) do not apply to
			 computer software, and nothing in that statute or these rules may be construed
			 to amend or modify that existing statute and the rule dealing with the property
			 tax treatment of computer software.
(2) In valuing low income or other housing
			 which qualifies for federal income tax credits, those tax credits are exempt
			 from property taxation to the extent that they are transferable separate and
			 apart from any interest in the housing property.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070, and
				  84.36.865. 06-24-043, §
				  458-50-190, filed 11/30/06, effective
				  12/31/06.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-010 - Declaration of purpose

Current through Register Vol. 24-14, July 15, 2024
This chapter is promulgated by the department of revenue in
				compliance with
				RCW
				84.48.075 to describe procedures for
				determination of indicated ratios of real and personal property for each
				county, so as to accomplish the equalization of property values required by
				RCW
				84.12.350,
				84.16.110,
				84.48.080 and
				84.52.065. The procedures in this
				chapter describing the department's annual ratio study are designed to ensure
				uniformity and equity in property taxation throughout the state to the maximum
				extent possible.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-010, filed 2/8/96, effective 3/10/96. Statutory Authority:
				  RCW
				  84.48.075. 79-11-029 (Order PT 79-3), §
				  458-53-010, filed 10/11/79. Formerly WAC
				  458-52-010.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-030 - Stratification of assessment rolls-Real property

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule
			 explains the stratification process for real property. The stratification
			 process is the grouping of real property within each county into homogeneous
			 classifications based upon certain criteria in order to obtain representative
			 samples. Stratification is used in determining the number of appraisals to be
			 included in the ratio study and also for ratio calculation. The county's most
			 current certified assessment rolls are used for stratification. Counties must
			 stratify rolls using a land use code stratification system as prescribed by the
			 department. (See
			 RCW
			 36.21.100.)
(2)
Stratification - Parcel count and
			 total value - Exclusions.
The stratification of the real property
			 assessment rolls must include a parcel count and a total value of the taxable
			 real property parcels in each stratum, excluding the following:
(a) Designated forest lands. (See chapter
			 84.33 RCW);
(b) Timberland
			 classified under chapter 84.34 RCW. (See
			 RCW
			 84.34.060) ;
(c) Current use properties in those counties
			 where a separate study is conducted pursuant to WAC
			 458-53-095(3);
(d) State assessed properties; and
(e) State-owned game lands as defined in
			 RCW
			 77.12.203(2).
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-050 - Land use stratification, sales summary and abstract report

Current through Register Vol. 24-14, July 15, 2024
Stratification of the assessment rolls, the annual sales
				summary, and the abstract report to the department for real property will be
				based on the following abstract categories:
Abstract Category
Land Use Code
1. Single family residence
11, 14, 18, 19
2. Multiple family residence
12, 13
3. Manufacturing
21 through 39
4. Commercial
15, 16, 17, 41-49, 50-59, 61-69, 71-79
5. Agricultural
81
6. Agricultural (current use law)
83
7. Forest lands (chapter 84.33 RCW)
88
8. Open space (current use law)
94
9. Timberland (current use law)
95
10. Other
82, 84, 85, 86, 89, 91, 92, 93, 96-99
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070, and
				  84.48.075. 02-14-031, §
				  458-53-050, filed 6/24/02, effective 7/25/02; 96-05-002, § 458-53-050,
				  filed 2/8/96, effective 3/10/96. Statutory Authority:
				  RCW
				  84.48.075. 79-11-029 (Order PT 79-3), §
				  458-53-050, filed 10/11/79. Formerly WAC
				  458-52-040.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-070 - Real property sales studies

Current through Register Vol. 24-14, July 15, 2024
(1)
Sales study data.
The basis of the real property ratio study is
			 data obtained from real estate excise tax affidavits from each county. The
			 department will supplement the sales study with appraisals when it is
			 determined that the sales are insufficient to represent the level of
			 assessment. The appraisals will be selected according to criteria set forth in
			 WAC 458-53-130.
(2)
Time period for data used.
The sales study will only use sales occurring in the twelve-month period
			 between May 1st preceding January of the current assessment year and April 30th
			 of the current assessment year.
(3)
Deduction from sale price.
One percent will be deducted from the
			 sale price shown on all valid real estate excise tax affidavits as an
			 adjustment for values transferred that are not assessable as real
			 property.
(4)
Sales not
			 included in the study - Assessment rolls using other than market value - New
			 construction.
Individual sales that show a sale price to assessed value
			 ratio of under twenty-five percent, or over one hundred seventy-five percent
			 shall be excluded from consideration in the study. However, if the number of
			 individual sales meeting either one of these criteria exceeds five percent of
			 the total number of valid sales for a county, then these sales shall be
			 considered in the sales study.
(a) The
			 exclusion of valid sales in accordance with this subsection shall not apply in
			 situations where other than market value of a particular type of property is
			 being listed on the assessment rolls of the county, as disclosed in any
			 examination by the department. If other than market value is being listed on
			 the assessment rolls for a particular type of real or personal property and,
			 after notification by the department, is not corrected, the department shall
			 adjust the ratio of that type of property, which adjustment shall be used in
			 determining the county's indicated personal or real property ratio. When a
			 particular type of property is found to be at other than market value, that
			 type of property shall be separated from the other properties in the
			 computation of the ratio. The department shall compile the total assessed value
			 and total market value for that type of property, and it shall be included in
			 the ratio as provided in WAC
			 458-53-135(3)
			 and 458-53-160(3).
(b) The exclusion of valid sales in
			 accordance with this subsection shall not apply to sales of property on which
			 there is new construction value that has not yet been placed on the county
			 assessment roll.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-095 - Property values used in the ratio study

Current through Register Vol. 24-14, July 15, 2024
The following property values shall be included in the ratio
				study:
(1)
Assessed
			 values.
Values determined by county assessors according to the
			 provisions of
			 chapters
			 84.40 RCW (Listing of
			 property) and 84.41 RCW (Revaluation of property).
(2)
Forest land values.
Values
			 of forest land classified or designated under chapter 84.33 RCW and values of
			 timberland classified under
			 chapter
			 84.34 RCW.
(3)
Current use values.
Values
			 of land (except timber land) and improvements classified under
			 chapter
			 84.34 RCW (current use
			 assessment). Values of land (except timber land) and improvements classified
			 under chapter 84.34
			 RCW shall be included as a separate class for counties when those values equal
			 or exceed fifteen percent of the total assessed value of locally assessed real
			 property in the county.
(4)
Advisory values.
Advisory values supplied to the assessor by the
			 department, but only if the property falls within the sales study provided for
			 in WAC 458-53-070 or
			 458-53-100 or is selected in the
			 appraisal or audit study in accordance with WAC
			 458-53-130 and
			 458-53-140.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-095, filed 2/8/96, effective
				  3/10/96.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-100 - County generated sales studies

Current through Register Vol. 24-14, July 15, 2024
(1)
Sales data provided by county.
Sales data provided to the
			 department by counties in accordance with these rules and subject to audit by
			 the department, shall be used by the department to determine the indicated real
			 property ratio. The data provided shall be in the form of two reports, a report
			 consisting of data from valid sales, and a report listing those sales deemed to
			 be invalid.
(2)
Report of
			 valid sales.
The county generated sales report consisting of data from
			 valid sales shall include the following information for each valid sale:
(a) The real estate excise tax affidavit
			 number.
(b) The transfer instrument
			 type.
(c) The parcel number(s), or
			 other file identification number(s).
(d) The date of sale.
(e) The sale price of the
			 transaction.
(f) The sale price of
			 the transaction reduced by one percent.
(g) The land use code for the sale
			 property.
(h) The current assessed
			 value on the county's assessment roll for the sale property.
(i) The previous year's assessed
			 value.
(j) A ratio determined by
			 dividing the current year's assessed value by the adjusted sale price (the
			 adjusted sale price is the amount determined in (f) of this
			 subsection).
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-105 - Review procedures for county studies

Current through Register Vol. 24-14, July 15, 2024
(1)
Department to monitor
			 compliance.
The department shall review a sales assessment study
			 produced by a county in order to monitor compliance with the rules in this
			 chapter.
(2)
Elements to be
			 verified.
Elements of the county sales study that may be verified
			 include, but are not limited to:
(a) Property
			 identification;
(b) Land use code
			 classification;
(c) Properties
			 reported on real estate excise tax affidavits that were transferred using a
			 warranty deed or real estate contract;
(d) Sales month identification;
(e) Deletion practices and
			 identification;
(f) Computation
			 procedures, including whether the sales value used was one hundred percent or
			 whether the sales value was reduced by one percent;
(g) Sales and assessment values;
			 and
(h) Revaluation assessment
			 practices.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-130 - Real property appraisal studies

Current through Register Vol. 24-14, July 15, 2024
(1)
Review of prior year's
			 sales.
In order to determine which strata do not have sufficient sales
			 to produce a sales sample representative of the level of assessment, the
			 department shall review a county's prior year's sales studies. This review will
			 determine the number of appraisals necessary to be added to the sales
			 sample.
(2)
Selection of
			 properties for appraisal.
The properties to be appraised by the
			 department shall be selected on a statistically accepted random basis such as
			 stated numerical sequence or random number tables.
(3)
Department appraisals.
Appraisals conducted by the department shall include a physical appraisal of
			 the subject property in order to assure that the most accurate estimate of
			 market value is determined, and shall not be conducted on the basis of mass
			 appraisal techniques. The value determined will be the value as of January 1 of
			 the assessment year, or for appraisals involving new construction, the value as
			 of July 31.
(4)
Review with
			 county.
The department shall review completed appraisals with the
			 assessor and/or the assessor's staff. After the review is complete, the
			 appraisals shall be included with the sales data for computation of the real
			 property ratio.
(5)
Allocation of real and personal property values.
Allocation of
			 value between real and personal property of the total value of appraised
			 property for purposes of the ratio study will be determined using each
			 assessor's method of classifying real and personal property.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-130, filed 2/8/96, effective 3/10/96. Statutory Authority:
				  RCW
				  84.48.075. 86-21-004 (Order PT 86-6), §
				  458-53-130, filed 10/2/86; 84-14-039 (Order PT 84-2), § 458-53-130, filed
				  6/29/84; 79-11-029 (Order PT 79-3), § 458-53-130, filed 10/11/79. Formerly
				  WAC 458-52-070.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-135 - Indicated real property ratio - Computation

Current through Register Vol. 24-14, July 15, 2024
(1)
Determination of ratio for assessed
			 value strata.
For each real property stratum, average assessed value and
			 average market value shall be determined from the results of selected sales and
			 appraisal studies. The average assessed value of the samples for each stratum
			 divided by the average market value of the samples determines the ratio for
			 each assessed value stratum.
(2)
Determination of indicated market value.
The actual total assessed
			 value for each stratum divided by the ratio for each assessed value stratum, as
			 determined by using the calculation set forth in subsection (1) of this
			 section, determines the indicated market value of each stratum for the
			 county.
(3)
Addition of
			 county assessed values for current use and forest land -- Assessor's
			 certification of values.
The county assessed values of current use land
			 and improvements (chapter 84.34
			 RCW) and forest land (chapter 84.33 RCW) as indicated on the current
			 certification provided by the assessor to the county board of equalization are
			 added to the actual total assessed value for the county. Ratios for current use
			 land and improvements and for forest land are applied to the county assessed
			 values to determine indicated market values.
(a) A copy of the assessor's certification to
			 the board of equalization shall be filed with the department by July 15th, or
			 when the rolls for the current assessment year are completed, whichever is
			 later. The certification form shall be properly completed with all required
			 information.
(b) If a copy of the
			 assessor's certification is not received from an assessor prior to September 1,
			 the assessor's abstract of assessed values for the current year may be used,
			 when available. If not available, the assessed values from the abstract of the
			 previous year may be used.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-140 - Personal property ratio study

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule provides information about the personal
			 property ratio study, including the basis for a county's personal property
			 ratio, the determination of strata for each county, and the effect of the
			 discovery of omitted property on the ratio study.
(2)
Basis for personal property
			 ratio.
The basis for a county's personal property ratio will be
			 valuation data with respect to personal property from the three years preceding
			 the current assessment year.
(3)
Stratification of rolls.
Determination of strata for each county
			 will be made by the department to ensure the selection of a representative
			 audit sample and will be reviewed periodically. After the strata have been
			 determined, the department will notify the counties of the strata limits and
			 each county must provide the department with the following, taken from the
			 county's assessment rolls:
(a) A
			 representative number of samples, as determined by the department, in each
			 stratum, together with:
(i) The name and
			 address of the taxpayer for each sample;
(ii) The previous year's assessed value for
			 each sample;
(iii) The current
			 year's assessed value for each sample; and
(iv) The actual number of samples;
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-160 - Indicated personal property ratio-Computation

Current through Register Vol. 24-14, July 15, 2024
(1)
Determination of ratio for assessed
			 value strata.
For each personal property assessed value stratum,
			 excluding properties identified in WAC
			 458-53-070(4)(a),
			 an average assessed value, and an average market value shall be determined from
			 the results of selected audit studies. The average assessed value for each
			 stratum divided by the average market value determines the ratio for each
			 assessed value stratum.
(2)
Determination of indicated market value.
The actual total assessed
			 value of the county for each stratum divided by the ratio for each assessed
			 value stratum, as determined by using the calculation set forth in subsection
			 (1) of this section, determines the indicated market value of each stratum for
			 the county.
(3)
Additional
			 categories.
The actual county total assessed values of properties
			 identified in WAC
			 458-53-070(4)(a)
			 are added as a separate category to the total county assessed value. A ratio
			 determined for these properties is applied against the total assessed value for
			 the category to determine the indicated total market value for the category.
(4)
Determination of county
			 indicated ratio.
The sum of the actual total county assessed values is
			 divided by the sum of the indicated market values to determine the county
			 indicated personal property ratio.
(5)
Example.
The following
			 illustration, using simulated values and ratios, indicates the ratio
			 computation procedures for personal property.
STEP 1 - STRATUM AVERAGE VALUE AND RATIO COMPUTATIONS
(1)
(2)
(3)
(4)
Stratum
Number of Samples
Average Assessed Value of Samples
Average Market Value of Samples
Stratum Ratio (Col. 2 / Col. 3)
$ 0 - 74,999
25
$ 17,000
$ 22,000
.773
75,000 - 249,999
15
124,000
235,000
.528
Over - 250,000
10
850,000
960,000
.885
STEP 2 - APPLICATION OF STRATUM RATIOS TO ACTUAL COUNTY
				ASSESSED VALUES
(1)
(2)
(3)
Stratum
Actual County Personal Property Assessed
						Values
Ratio
County Market Value Related to Actual
						Assessed Value (Col. 1 / Col. 2)
$ 0 - 74,999
$21,500,000
.773
$ 27,813,713
75,000 - 249,999
23,000,000
.528
43,560,606
Over - 250,000
50,000,000
.885
56,497,175
WAC
						458-53-070(4)(a)
Properties
0
0
Totals
$94,500,000
/ $127,871,499=73.9
County Indicated Personal Property Ratio
73.9%
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-160, filed 2/8/96, effective 3/10/96; 94-05-064, § 458-53-160,
				  filed 2/11/94, effective 3/14/94. Statutory Authority:
				  RCW
				  84.48.075. 87-12-029 (Order PT 87-5), §
				  458-53-160, filed 5/29/87; 86-21-004 (Order PT 86-6), § 458-53-160, filed
				  10/2/86; 84-14-039 (Order PT 84-2), § 458-53-160, filed 6/29/84; 79-11-029
				  (Order PT 79-3), § 458-53-160, filed 10/11/79. Formerly WAC
				  458-52-100.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-200 - Certification of county preliminary and indicated ratios-Review

Current through Register Vol. 24-14, July 15, 2024
(1)
Preliminary
			 ratio certified to assessor.
The department shall annually determine the
			 real property and personal property preliminary ratios for each county and
			 shall certify these ratios to the county assessor on or before the first Monday
			 in September.
(2)
Request for
			 review.
Upon request of the assessor, a landowner, or an owner of an
			 intercounty public utility or private car company, the department shall review
			 the county's preliminary ratio with the requesting party and may make any
			 changes indicated by such review. This review shall take place between the
			 first and third Mondays of September. If the department does not certify the
			 preliminary ratios as required by subsection (1) of this section, the review
			 period shall extend for two weeks from the date of certification.
(3)
Review exclusions.
For the
			 personal property ratio study, the prior year's audit results shall not be
			 subject to review.
(4)
Certification of indicated ratios.
Prior to equalization of
			 assessments pursuant to
			 RCW
			 84.48.080 and after the third Monday of
			 September, the department shall certify to each county assessor the indicated
			 real and personal property ratios for that county.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-200, filed 2/8/96, effective 3/10/96. Statutory Authority:
				  RCW
				  84.48.075. 84-14-039 (Order PT 84-2), §
				  458-53-200, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-200, filed
				  10/11/79. Formerly WAC 458-52-140.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-53 - Property tax annual ratio study › Section 458-53-210 - Appeals

Current through Register Vol. 24-14, July 15, 2024
If an assessor, landowner, or owner of an intercounty utility
				or private car company has reviewed the ratio study as provided in WAC
				458-53-200, that person or
				company may appeal the department's indicated ratio determination, as certified
				for that county, to the state board of tax appeals pursuant to
				RCW
				82.03.130(5). The appeal to
				the state board of tax appeals must be filed no later than fifteen days after
				the date of mailing of the certification.
Statutory Authority:
				  RCW
				  84.08.010,
				  84.08.070 and
				  84.48.075. 96-05-002, §
				  458-53-210, filed 2/8/96, effective 3/10/96. Statutory Authority:
				  RCW
				  84.48.075. 84-14-039 (Order PT 84-2), §
				  458-53-210, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-210, filed
				  10/11/79. Formerly WAC 458-52-150.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-005 - Nature of estate tax, definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule describes the nature of Washington state's
			 estate tax as it is imposed by chapter 83.100 RCW (Estate and Transfer Tax Act)
			 for deaths occurring on or before May 16, 2005. The estate tax rules for deaths
			 occurring on or after May 17, 2005, can be found in WAC
			 458-57-105 through
			 458-57-165. It also defines terms
			 that will be used throughout chapter 458-57 WAC (Washington Estate and Transfer
			 Tax Reform Act Rules).
(2)
Nature of Washington's estate tax.
The estate tax is neither a
			 property tax nor an inheritance tax. It is a tax imposed on the transfer of the
			 entire taxable estate and not upon any particular legacy, devise, or
			 distributive share.
(a) The state of
			 Washington operates under
			 RCW
			 83.100.020, which references the Internal
			 Revenue Code (IRC) as it existed
January 1, 2005.
The Washington
			 State Estate and Transfer Tax Return and the instructions for completing the
			 return can be found on the department's web site at
http://www.dor.wa.gov/
under the
			 heading titled forms. The return and instructions can also be obtained by
			 calling the estate tax section at 360-570-3265 (option 2).
(b) The estate tax does not apply to
			 completed absolute lifetime transfers. Section 2035(d) of the Internal Revenue
			 Code generally exempts such transfers. To the extent permitted by this
			 provision, lifetime transfers are not subject to Washington estate tax. The
			 state of Washington does not have a gift tax.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-015 - Valuation of property, property subject to estate tax, how to calculate the tax

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
				  RCW
				  83.100.047 and
				  83.100.200. 06-07-051, §
				  458-57-015, filed 3/9/06, effective 4/9/06. Statutory Authority:
				  RCW
				  83.100.200. 02-18-078, § 458-57-015,
				  filed 8/30/02, effective 9/30/02; 99-15-095, § 458-57-015, filed 7/21/99,
				  effective 8/21/99.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-017 - Property subject to generation-skipping transfer tax, how to calculate the tax, allocation of generation-skipping transfer exemption

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
				  RCW
				  83.100.047 and
				  83.100.200. 06-07-051, §
				  458-57-017, filed 3/9/06, effective 4/9/06. Statutory Authority:
				  RCW
				  83.100.200. 02-18-078, § 458-57-017,
				  filed 8/30/02, effective 9/30/02.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-045 - Administration of the tax - Releases, amended returns, and refunds

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule applies to deaths occurring on or before
			 May 16, 2005. This rule contains information on releases issued by the
			 department for state estate taxes paid. It explains how and when an amended
			 state return should be filed. Information on escheat estates and absentee
			 distributees (missing heirs) can be found at RCW 458-57-165. The estate tax
			 rules for deaths occurring on or after May 17, 2005, can be found in WAC
			 458-57-105 through
			 458-57-165.
(2)
Releases.
When the state
			 estate taxes have been paid in full, the department will issue a release to the
			 personal representative upon request. The request will include a completed
			 state return and a copy of the completed federal return, if one was filed. The
			 final determination of the amount of taxes due from the estates that have filed
			 federal returns is contingent on receipt of a copy of the final closing letter
			 issued by the Internal Revenue Service (IRS). The department may require
			 additional information to substantiate information provided by those estates
			 that are not required to file federal returns. The release issued by the
			 department will not bind or estop the department in the event of a
			 misrepresentation of facts.
(3)
Amended returns.
An amended state return must be filed with the
			 department within five days after any amended federal return is filed with the
			 IRS and must be accompanied by a copy of the amended federal return.
(a) Any time that the amount of federal tax
			 due is adjusted or when there is a final determination of the federal tax due
			 the person responsible must give written notification to the department. This
			 notification must include copies of any final examination report, any
			 compromise agreement, the state tax closing letter, and any other available
			 evidence of the final determination.
(b) If any amendment, adjustment or final
			 determination results in additional state estate tax due, interest will be
			 calculated on the additional tax due at the annual variable interest rate
			 described in
			 RCW
			 82.32.050(2).
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-105 - Nature of estate tax, definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule applies to deaths occurring on or after
			 May 17, 2005, and describes the nature of Washington state's estate tax as it
			 is imposed by chapter 83.100 RCW (Estate and Transfer Tax Act). It also defines
			 terms that will be used throughout chapter 458-57 WAC (Washington Estate and
			 Transfer Tax Reform Act rules). The estate tax rule on the nature of estate tax
			 and definitions for deaths occurring on or before May 16, 2005, can be found in
			 WAC 458-57-005.
(2)
Nature of Washington's estate
			 tax.
The estate tax is neither a property tax nor an inheritance tax. It
			 is a tax imposed on the transfer of the entire taxable estate and not upon any
			 particular legacy, devise, or distributive share.
(a)
Relationship of Washington's estate
			 tax to the federal estate tax.
The department administers the estate tax
			 under the legislative enactment of chapter 83.100 RCW, which references the
			 Internal Revenue Code (IRC) as it existed January 1, 2005. Federal estate tax
			 law changes enacted after January 1, 2005, do not apply to the reporting
			 requirements of Washington's estate tax. The department will follow federal
			 Treasury Regulations section 20 (Estate tax regulations), in existence on
			 January 1, 2005, to the extent they do not conflict with the provisions of
			 chapter 83.100 RCW or 458-57 WAC. For deaths occurring January 1, 2009, and
			 after, Washington has different estate tax reporting and filing requirements
			 than the federal government. There will be estates that must file an estate tax
			 return with the state of Washington, even though they are not required to file
			 with the federal government. The Washington state estate and transfer tax
			 return and the instructions for completing the return can be found on the
			 department's web site at
http://
			 www.dor.wa.gov/
under the heading titled forms.
(b)
Lifetime transfers.
Washington estate tax taxes lifetime transfers only to the extent included in
			 the federal gross estate. The state of Washington does not have a gift
			 tax.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-145 - Administration of the tax - Releases, amended returns, refunds, and statute of limitations

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule applies to deaths occurring on or after
			 May 17, 2005, and contains information on releases issued by the department for
			 state estate taxes paid. It explains how and when an amended state return
			 should be filed and information on refunds and statute of limitations. The
			 estate tax rule on releases, amended returns etc., for deaths occurring on or
			 before May 16, 2005, can be found in WAC
			 458-57-045.
(2)
Releases.
When the state
			 estate taxes have been paid in full, the department will issue a release to the
			 personal representative. The final determination of the amount of taxes due
			 from the estates that have filed federal returns is contingent upon receipt of
			 a copy of the final closing letter issued by the Internal Revenue Service
			 (IRS). The department may require additional information to substantiate
			 information provided by those estates that are not required to file federal
			 returns. The release issued by the department will not bind or estop the
			 department in the event of a misrepresentation of facts.
(3)
Amended returns.
An amended
			 state return must be filed with the department within five days of amending a
			 federal return with the IRS and must be accompanied by a copy of the amended
			 federal return. For those estates that are not required to file a federal
			 return, an amended estate tax return must be received within three years from
			 the date the original estate tax return was filed or within two years of paying
			 the tax, whichever is later.
(a) Any time that
			 the amount of federal tax due is adjusted or when there is a final
			 determination of the federal tax due, the person responsible for filing must
			 give written notification to the department. This notification must include
			 copies of any final examination report, any compromise agreement, the state tax
			 closing letter, and any other available evidence of the final
			 determination.
(b) If any
			 amendment, adjustment or final determination results in additional state estate
			 tax due, interest will be calculated on the additional tax due at the annual
			 variable interest rate described in
			 RCW
			 82.32.050.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-57 - State of Washington Estate and Transfer Tax Reform Act rules › Section 458-57-175 - Qualified family-owned business interests

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule
			 applies to deaths occurring on or after January 1, 2014, and is intended to
			 determine if the estate is eligible for the qualified family-owned business
			 interest deduction and to correctly calculate the deduction.
(2)
Definitions.
For purposes of
			 this section, the following definitions apply:
(a) "Material participation" has the same
			 meaning as provided in section 2032A(e)(6) of the Internal Revenue Code as
			 amended or renumbered as of January 1, 2005. Under the federal tax provision,
			 "material participation" generally means the individual is materially involved
			 in making significant management decisions for the trade or business, but not
			 necessarily the day-to-day operating decisions.
A decedent or a qualified heir will not be treated as
				materially participating in the family-owned business if:
(i) The income derived from carrying out the
			 trade or business is from the management decisions of another individual or
			 entity under an arrangement between the other individual or entity and the
			 decedent or qualified heir.
(ii)
			 The activities that constitute material participation of any agent of the
			 decedent or qualified heir are not considered the activities of the decedent or
			 qualified heir when determining their material participation in the
			 family-owned business.
(iii) A
			 trustee's activities managing a trust for the benefit of other individuals
			 shall not be considered when determining whether any of the present interest
			 beneficiaries of the trust materially participate in the family-owned
			 business.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-100 - Real estate excise tax-Overview

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
Chapter 82.45 RCW imposes an excise tax on every
				sale of real estate in the state of Washington. All sales of real property in
				this state are subject to the real estate excise tax unless specifically
				exempted by chapter 82.45 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 chapter provides applicable
				definitions, describes procedures for payment, collection, and reporting of the
				tax, explains when penalties and interest are imposed on late payment,
				describes those transactions exempted from imposition of the tax, and explains
				the procedures for refunds and reviews.
Legislation adopted in
((
2019.
Effective January 1, 2020, chapter 424, Laws of 2019 established new
				  requirements regarding:
(a) Sales of
				real estate that result from the transfer of a controlling interest in an
				entity that owns real property within a thirty-six-month period. See
				RCW
				82.45.010 and WAC
				458-61A-101.
(b) New graduated real estate excise tax
				rates. See
				RCW
				82.45.060.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-103 - Transfers involving an underlying debt

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real
				estate excise tax applies to transfers of real property when the grantee
				relieves the grantor from an underlying debt on the property or makes payments
				on the grantor's debt. The measure of the tax is the combined amount of the
				underlying debt on the property and any other consideration.
(2)
Consideration.
Consideration
				includes the amount of any lien, mortgage, contract indebtedness, or other
				encumbrance remaining unpaid on the property at the time of sale. It does not
				include the amount of any outstanding lien or encumbrance in favor of the
				United States, the state, or a municipal corporation for taxes, special
				benefits, or improvements.
				RCW
				82.45.030(3).
(3)
Examples.
This rule includes
				a number of examples that identify a set of facts, and then state a conclusion.
				These examples are only a general guide. The tax results of other situations
				must be determined after a review of all facts and circumstances.
(a)
Example 1.
Yen transfers
				property to Lee that is subject to an underlying debt (i.e., mortgage). Lee
				agrees to make all future mortgage payments on Yen's debt, but gives no other
				consideration for the property. Yen owes real estate excise tax on the amount
				of the underlying debt. Lee's payments on the underlying debt relieve Yen of
				her debt obligation. Therefore, Yen receives consideration.
(b)
Example 2.
Same facts as
				above, except Lee also paid Yen $10,000 in addition to making the mortgage
				payments. In this circumstance, the measure of the real estate excise tax is
				the amount of the mortgage outstanding at the time of sale, plus the additional
				consideration paid of $10,000.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-104 - Assignments

Current through Register Vol. 24-14, July 15, 2024
(1)
Purchasers.
(a) The real estate
				excise tax does not apply to an assignment of a purchaser's interest in an
				earnest money agreement if neither the earnest money agreement nor its
				assignment results in a change of title to or ownership of the real
				property.
(b) The real estate
				excise tax does apply to transfers when the purchaser of real property under a
				real estate contract assigns the purchaser's interest in the contract for
				consideration. The tax is based on all consideration paid or contracted to be
				paid to the grantor for the assignment, including any unpaid principal balance
				due on the assigned real estate contract.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-105 - Mobile and floating home sales

Current through Register Vol. 24-14, July 15, 2024
(1)
Mobile homes.
The transfer of a mobile home is subject to either
				real estate excise tax or sales/use tax, depending on the characteristics of
				the transfer, regardless of whether the mobile home is classified as real or
				personal property on the assessment rolls.
(2)
Application of real estate excise
				tax.
The real estate excise tax applies to the transfer of a mobile home
				that:
(a) Is affixed to land by a foundation
				(post or blocks) and has connections for utilities;
(b) Is not required to be removed from the
				land as a condition of sale; and
(c) Has been subject to retail sales or use
				tax during a previous sale.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-106 - Sales of improvements to land, leases, and leases with option

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
(a) The sale of
				improvements constructed on real property is subject to the real estate excise
				tax if the contract of sale does not require that the improvements be removed
				at the time of sale.
(b) The
				transfer of a lessee's interest in a leasehold for valuable consideration is
				taxable to the extent the transfer includes any improvement constructed on
				leased land. If the selling price of an improvement is not separately stated,
				or cannot otherwise be reasonably determined, the assessed value of the
				improvement as entered on the assessment rolls of the county assessor will be
				used.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-107 - Option to purchase

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
The real estate excise tax applies to a conveyance
				of real property upon the exercise of an option to purchase.
(2)
Taxability of sales of
				options.
The real estate excise tax does not apply to the grant or sale
				of an option and the real estate excise tax affidavit is not required for that
				transaction. However, the sale of an option is subject to business and
				occupation tax under the service and other category and should be reported on
				the combined excise tax return.
				RCW
				82.04.290.
(3) For the sole purpose of determining
				whether a transfer or acquisition of a controlling interest pursuant to the
				exercise of an option occurred within the period provided in
				RCW
				82.45.010 and WAC
				458-61A-101,
				the date on which the option agreement was executed is deemed to be the date of
				the transfer or acquisition. For any other purpose; however, the date on which
				the option is exercised is the date of the transfer or acquisition.
				RCW
				82.45.010(2)(b). See WAC
				458-61A-101.
(4)
Examples.
(a) Joe acquires an option at a cost of
				$100,000. The option, if exercised, allows Joe to purchase ten parcels of land
				for $700,000. As individual parcels, these lots of land are uneconomical to
				develop. Joe "packages" the land, making it economically feasible to develop by
				either obtaining sufficient acreage or required studies. Buildup, a real estate
				development and construction company, purchases Joe's option on the property
				for $2.3 million and subsequently exercises the option, paying $700,000 for the
				land. The real estate excise tax does not apply to the sale of the option,
				however the $2.3 million received for the option is subject to the business and
				occupation tax under the service and other category. The measure of the real
				estate excise tax is the $700,000 purchase price paid on the transfer of the
				land.
(b) Consider the same initial
				facts as in the example in (a) of this subsection, but instead, Joe exercises
				the option, and subsequently sells the land to Buildup. The real estate excise
				tax applies to both the transfer to Joe and the subsequent transfer from Joe to
				Buildup.
Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-61A - Real estate excise tax › GENERAL INFORMATION AND TAXABILITY OF TRANSFERS › Section 458-61A-108 - Contractor

Current through Register Vol. 24-14, July 15, 2024
(1)
In
				general.
If land is deeded to a contractor with an agreement to reconvey
				the property after construction of an improvement, the real estate excise tax
				does not apply to either the first conveyance or to the reconveyance if:
(a) The land is deeded for the sole purpose
				of enabling the contractor to obtain financing for the construction of the
				improvement on the property conveyed; and
(b) The agreement to reconvey is contained in
				a written statement made prior to the original conveyance.