Posted by Larry (WA) on February 26, 2001 at 10:09:37:
I am not a lawyer, but this is what I understand:
The actual amount of real estate excise tax depends on the location of the property. The excise tax varies from county to county, and sometimes within a county. In Spokane County, for the most part, it is 1.78%. This tax is paid everytime property title is transferred, with some exceptions such as foreclosure, real estate broker temporary inventory, putting title in an intervivos trust where the owner remains the sole beneficiary, and a few other cases.
Assigning a real estate purchase contract does not trigger the excise tax.
Anyone familiar with the laws on excise tax in WA state?
From what I can tell, every person involved in selling property is required to pay 1.28% of the sales/net price at the time of the sale. Even acting as a principal in a transaction and assigning it would trigger this tax. The property will not be recorded until such tax is paid and there is a 30 day grace period to pay the tax.