Washington Code 82.45.060 – Tax on sale of property
Current as of: 2023 | Check for updates
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(1) There is imposed an excise tax upon each sale of real property.
Terms Used In Washington Code 82.45.060
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Legacy: A gift of property made by will.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- selling price: means the true and fair value of the property conveyed. See Washington Code 82.45.030
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(a) Through December 31, 2019, the rate of the tax imposed under this section is 1.28 percent of the selling price.
(b) Beginning January 1, 2020, except as provided in (c) of this subsection, the rate of the tax imposed under this section is as follows:
(i) 1.1 percent of the portion of the selling price that is less than or equal to five hundred thousand dollars;
(ii) 1.28 percent of the portion of the selling price that is greater than five hundred thousand dollars and equal to or less than one million five hundred thousand dollars;
(iii) 2.75 percent of the portion of the selling price that is greater than one million five hundred thousand dollars and equal to or less than three million dollars;
(iv) Three percent of the portion of the selling price that is greater than three million dollars.
(c) The sale of real property that is classified as timberland or agricultural land is subject to the tax imposed under this section at a rate of 1.28 percent of the selling price.
(2) Beginning July 1, 2022, and every fourth year thereafter:
(a) The department must adjust the selling price threshold in subsection (1)(b)(i) of this section to reflect the lesser of the growth of the consumer price index for shelter or five percent. If the growth is equal to or less than zero percent, the current selling price threshold continues to apply.
(b) The department must adjust the selling price thresholds in subsection (1)(b)(ii) through (iv) of this section by the dollar amount of any increase in the selling price threshold in subsection (1)(b)(i) of this section.
(c) The department must publish updated selling price thresholds by September 1, 2022, and September 1st of every fourth year thereafter. Updated selling price thresholds will apply beginning January 1, 2023, and January 1st every fourth year thereafter. Adjusted selling price thresholds must be rounded to the nearest one thousand dollars. No changes may be made to adjusted selling price thresholds once such adjustments take effect.
(d) The most recent selling price threshold becomes the base for subsequent adjustments.
(e) The department must report adjustments to the selling price thresholds to the fiscal committees of the legislature, beginning December 1, 2022, and December 1st every fourth year thereafter.
(3)(a) The department must publish guidance to assist sellers in properly classifying real property on the real estate excise tax affidavit for purposes of determining the proper amount of tax due under this section. Real property with multiple uses must be classified according to the property’s predominant use. The department’s guidance must include factors for use in determining the predominant use of real property.
(b) County treasurers are not responsible for verifying that the seller has properly classified real property reported on a real estate excise tax affidavit. The department is solely responsible for such verification as part of its audit responsibilities under RCW 82.45.150.
(4)(a) Beginning July 1, 2013, and ending December 31, 2019, an amount equal to two percent of the proceeds of this tax must be deposited in the public works assistance account created in RCW 43.155.050, an amount equal to four and one-tenth percent must be deposited in the education legacy trust account created in RCW 83.100.230, an amount equal to one and six-tenths percent must be deposited in the city-county assistance account created in RCW 43.08.290, and the remainder must be deposited in the general fund.
(b) Beginning January 1, 2020, amounts collected from the tax imposed under this section must be deposited as provided in RCW 82.45.230.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) “Agricultural land” means farm and agricultural land and farm and agricultural conservation land, as those terms are defined in RCW 84.34.020, including any structures on such land.
(b) “Consumer price index for shelter” means the most current seasonally adjusted index for the shelter expenditure category of the consumer price index for all urban consumers (CPI-U) as published by July 31st by the bureau of labor statistics of the United States department of labor.
(c) “Growth of the consumer price index for shelter” means the percentage increase in the consumer price index for shelter as measured from data published by the bureau of labor statistics of the United States department of labor by July 31st for the most recent three-year period for the selling price threshold adjustment in 2022, and the most recent four-year period for subsequent selling price threshold adjustments.
[ 2019 c 424 § 1; 2017 3rd sp.s. c 10 § 13; 2013 2nd sp.s. c 9 § 6. Prior: 2011 1st sp.s. c 50 § 975; 2011 1st sp.s. c 48 § 7035; 2005 c 450 § 1; 2000 c 103 § 15; 1987 c 472 § 14; 1983 2nd ex.s. c 3 § 20; 1982 1st ex.s. c 35 § 14; 1980 c 154 § 2; 1969 ex.s. c 223 § 28A.45.060; prior: 1951 1st ex.s. c 11 § 5. Formerly RCW 28A.45.060, 28.45.060.]
NOTES:
Automatic expiration date and tax preference performance statement exemption—2019 c 424: “The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act.” [ 2019 c 424 § 8.]
Effective date—2019 c 424: “This act takes effect January 1, 2020.” [ 2019 c 424 § 9.]
Intent—Effective dates—2013 2nd sp.s. c 9: See notes following RCW 28A.150.220.
Effective dates—2011 1st sp.s. c 50: See note following RCW 15.76.115.
Effective date—2011 1st sp.s. c 48: See note following RCW 39.35B.050.
Effective date—2005 c 450: “This act takes effect August 1, 2005.” [ 2005 c 450 § 4.]
Construction—Severability—Effective dates—1983 2nd ex.s. c 3: See notes following RCW 82.04.255.
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
Purpose—Effective dates—Savings—Disposition of certain funds—Severability—1980 c 154: See notes following chapter digest.