WAC 458-61A-100 — Real Estate Excise Tax—Overview

Agency filings affecting this section (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 . (2) Imposition of tax. (a) The taxes imposed are due at the time the sale occurs, are the obligation of the seller, and, in most instances, are collected by the county upon presentation of the documents of sale for recording in the public records. (b) If there is a sale of the controlling interest in an entity that owns real property in this state, the tax is paid to the department at the time the interest is transferred. See WAC 458-61A-101 . (3) Rate of tax. The rate of the tax is set forth in RCW 82.45.060 . Counties, cities, and towns may impose additional taxes on sales of real property on the same incidences, collection, and reporting methods authorized under chapter 82.45 RCW. See chapter 82.46 RCW. (4) Nonprofit organizations. Transfers to or from an organization exempt from ad valorem property taxes under chapter 84.36 RCW, or from federal income tax, because of the organization's nonprofit or charitable status are nevertheless subject to the real estate excise tax unless specifically exempt under chapter 82.45 RCW or these rules. (5) Sales in Indian country. A sale of real property located in Indian country by an enrolled tribe or tribal member is not subject to real estate excise tax. See WAC 458-20-192 for complete information regarding the taxability of transactions involving Indians and Indian country. [Statutory Authority: RCW 82.45.150 , 82.32.300 , and 82.01.060 (2). WSR 20-04-063, § 458-61A-100, filed 1/31/20, effective 3/2/20. Statutory Authority: RCW 82.32.300 and 82.01.060 (2). WSR 16-12-074, § 458-61A-100, filed 5/27/16, effective 6/27/16. Statutory Authority: RCW 82.45.150 , 82.32.300 , and 82.01.060 . WSR 11-16-106, § 458-61A-100, filed 8/3/11, effective 9/3/11. Statutory Authority: RCW 82.32.300 , 82.01.060 (2), and 82.45.150 . WSR 05-23-093, § 458-61A-100, filed 11/16/05, effective 12/17/05.]