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AGO Opinions with Topic: REAL ESTATE EXCISE TAX
AGO 2006 No. 18 >  October 9, 2006
TAXATION - PROPERTY - REAL ESTATE EXCISE TAX - CITIES AND TOWNS - COUNTIES
Effect on city and county if city chooses not to impose the optional sales and use tax authorized by RCW 82.14.030(2). 1. If a city has chosen not to impose the optional sales and use tax authorized by RCW 82.14.030(2), and the county in which the city is located has chosen to impose the same tax, the revenue from the tax would go to the county.2. If a city chooses to impose a local real estate excise tax authorized by RCW 82.46.010 in lieu of the optional sales and use tax authorized by RCW 82.14.030(2), the city may not arrange for the county to continue to pay the city a portion of the revenue from the optional sales and use tax, unless the city and county have entered into a local service agreement under RCW 36.115.
AGO 1961 No. 78 >  November 27, 1961
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO SALE OF INDIVIDUAL APARTMENT BY APARTMENT OWNER
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- APPLICABILITY TO SALE OF INDIVIDUAL APARTMENT BY APARTMENT OWNER The sale of an individual apartment by the owner of an apartment building which entitles the purchaser to a warranty deed upon completion of payments, is a "sale" within the meaning of RCW 28.45.010; therefore the sale is subject to the real estate excise tax.
AGO 1974 No. 14 >  July 17, 1974
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY BY CORPORATION TO SHAREHOLDERS IN PARTIAL DISSOLUTION
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER OF REAL PROPERTY BY CORPORATION TO SHAREHOLDERS IN PARTIAL DISSOLUTION (1) A conveyance of real estate by a corporation to its shareholders in partial liquidation of the corporation, or in partial redemption of its stock, is a transfer for valuable consideration and thus is subject to the one percent real estate excise tax under RCW 28A.45.010. (2) In such a case, the "selling price" or measure of consideration under RCW 28A.45.030 is the market value of the stock, if ascertainable, or the fair market value of the real property if the value of the stock is not readily determinable.
AGO 1975 No. 6 >  April 3, 1975
TAXATION - COUNTY - REAL ESTATE EXCISE TAX - APPLICABILITY TO CERTAIN BANK DIVESTITURE TRANSACTIONS
TAXATION ‑- COUNTY ‑- REAL ESTATE EXCISE TAX ‑- APPLICABILITY TO CERTAIN BANK DIVESTITURE TRANSACTIONS (1) The conveyance by a national bank of certain of its banking premises constitutes a "sale" within the meaning of RCW 28A.45.010 under the following circumstances:  (a) the purpose for the conveyance is compliance with a directive from the Comptroller of the Currency pursuant to 12 U.S.C.371d; (b) simultaneously with the conveyance the new owner of the property leases it back to the bank under a lease agreement which allows the bank to repurchase the premises at any time during the term of the lease; and (c) the bank is required, under the same lease agreement, to repurchase the premises in any event upon expiration of the term of the lease.  (2) Under these same circumstances, the agreement for a lease‑back with option to purchase is also a "sale" within the meaning of RCW 28A.45.010.
AGO 1963 No. 40 >  July 25, 1963
TAXATION - REAL ESTATE EXCISE TAX - SALE - AUTHORITY OF COUNTY COMMISSIONERS TO ALTER DEFINITION
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- SALE ‑- AUTHORITY OF COUNTY COMMISSIONERS TO ALTER DEFINITION The board of county commissioners does not have the authority by ordinance or resolution to alter the definition of "sale" as it appears in chapter 28.45 RCW so as to exempt a transfer by a property owner to a corporation in which he holds more than a designated portion of the capital stock.
AGO 1963 No. 44 >  July 31, 1963
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY - TRANSFEROR CORPORATION OWNS ALL STOCK OF TRANSFEREE CORPORATION
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER OF REAL PROPERTY ‑- TRANSFEROR CORPORATION OWNS ALL STOCK OF TRANSFEREE CORPORATION The one percent real estate excise tax does not apply to the transfer of real property by one corporation to another corporation where the transferor owns all of the authorized issued and outstanding capital stock of the transferee and no additional stock is to be issued in exchange for the real property.
AGO 1964 No. 86 >  February 27, 1964
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY TO CORPORATION BY SOLE STOCKHOLDER IN EXCHANGE FOR COMMON STOCK
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER OF REAL PROPERTY TO CORPORATION BY SOLE STOCKHOLDER IN EXCHANGE FOR COMMON STOCK The transfer of real property to a corporation by the sole stockholder, the consideration being the issuance of common stock to said stockholder, constitutes a sale under chapter 28.45 RCW, the real estate excise tax statute.
AGO 1977 No. 14 >  June 29, 1977
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY - TRANSFER FROM CORPORATION TO PARTNERSHIP
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER OF REAL PROPERTY ‑- TRANSFER FROM CORPORATION TO PARTNERSHIP A transfer of real property from a corporation, prior to but in anticipation of its dissolution, to a partnership consisting of all of the shareholders of the corporation, is not subject to the one percent real estate excise tax under chapter 28A.45 RCW where, under the factual circumstances involved, the transferor corporation does not receive any valuable consideration in return.
AGO 1965 No. 47 >  October 14, 1965
TAXATION - PROPERTY - REAL ESTATE EXCISE TAX - TRANSFER BY DEED IN LIEU OF FORECLOSURE - RESALE UNDER CONTRACT OF SALE
TAXATION - PROPERTY ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER BY DEED IN LIEU OF FORECLOSURE ‑- RESALE UNDER CONTRACT OF SALE 1. The real estate excise tax does not apply to a transfer of real estate by deed from a mortgagee to the mortgagor in lieu of foreclosure. 2. Same:   The tax does apply to the immediate resale of the property by the mortgagee to the mortgagor under a contract of sale. 3. Same:   The fact that the two transfers constitute an over-all agreement between the parties does not affect the tax consequences.
AGO 1969 No. 3 >  January 21, 1969
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY FROM OWNER TO HIMSELF AS TRUSTEE FOR HIS OWN BENEFIT
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY FROM OWNER TO HIMSELF AS TRUSTEE FOR HIS OWN BENEFIT The real estate excise tax provided for by chapter 28.45 RCW does not apply to a conveyance of real property from the owner thereof to himself as trustee for his own benefit, with the right to revoke the trust at any time prior to death being reserved, and with his children being designated as alternative beneficiaries in the event that the trust is not thus revoked prior to death.
AGO 1956 No. 328 >  October 15, 1956
REAL ESTATE EXCISE TAX - GRANT TO FRATERNAL ORGANIZATION OF PROPERTY IN TRUST FOR GRANTOR, FOLLOWED BY A SUBSEQUENT SALE TO THIRD PARTY - APPLICABILITY OF TAX
REAL ESTATE EXCISE TAX ‑- GRANT TO FRATERNAL ORGANIZATION OF PROPERTY IN TRUST FOR GRANTOR, FOLLOWED BY A SUBSEQUENT SALE TO THIRD PARTY ‑- APPLICABILITY OF TAX The real estate excise tax is applicable to both a conveyance to a trustee and a subsequent conveyance by the trustee to a new purchaser.
AGO 1960 No. 100 >  February 10, 1960
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY TO A CORPORATION BY A SOLE STOCKHOLDER IN EXCHANGE FOR COMMON STOCK AS CONSTITUTING A SALE; THE RIGHT OF COUNTY COMMISSIONERS TO WAIVE PAYMENT OF TAX IN THE TRANSACTION
TAXATION - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY TO A CORPORATION BY A SOLE STOCKHOLDER IN EXCHANGE FOR COMMON STOCK AS CONSTITUTING A SALE; THE RIGHT OF COUNTY COMMISSIONERS TO WAIVE... (1) The transfer of real property to a corporation by the sole stockholder, the consideration being the issuance of common stock to said stockholder, constitutes a sale under chapter 28.45 RCW, the real estate excise tax statute.  (2) The board of county commissioners is not legally authorized to waive payment of the tax in the described transaction.
AGO 1957 No. 8 >  January 28, 1957
REAL ESTATE EXCISE TAX - TENANTS IN COMMON
REAL ESTATE EXCISE TAX‑-TENANTS IN COMMON An order by the court directing a sale of property owned by tenants in common and the sale thereafter is a taxable sale for real estate excise tax purposes.
AGO 1958 No. 146 >  January 7, 1958
TAXATION - REAL ESTATE EXCISE TAX
TAXATION ‑- REAL ESTATE EXCISE TAX The real estate excise tax applies to the assignment of a vendee's interest of property purchased by him at a sale pursuant to a mortgage foreclosure.
AGO 1957 No. 11 >  February 1, 1957
REAL ESTATE EXCISE TAX - MEASURE OF TAX
REAL ESTATE EXCISE TAX ‑- MEASURE OF TAX The selling price of real property for excise tax purposes includes the amount of any unpaid balance on any outstanding mortgage
AGO 1957 No. 95 >  July 9, 1957
REAL ESTATE EXCISE TAX
REAL ESTATE EXCISE TAX A transfer by a vendee of his interest to a third person where no consideration is involved except the assumption of the vendee's liability to pay the balance of the purchase price is excluded from the term "sale."
AGO 1960 No. 131 >  July 27, 1960
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO SALE OF TIMBER BY INDIANS
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO SALE OF TIMBER BY INDIANS The real estate excise tax does not apply to sales of timber made by Indians holding trust allotments where after the execution of the contracts the Indians have received fee patents to their lands.
AGO 1960 No. 135 >  August 15, 1960
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO CONVEYANCES WHERE THE OWNER CONVEYS TO A CONTRACTOR WHO IN TURN CONVEYS TO A THIRD PARTY
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO CONVEYANCES WHERE THE OWNER CONVEYS TO A CONTRACTOR WHO IN TURN CONVEYS TO A THIRD PARTY The county real estate excise tax applies to both conveyances where an owner desiring a new home conveys his existing home to a contractor who first uses the old home as collateral to secure a loan under FHA to finance the construction of the new home and then conveys the old home to a third person.
AGO 1957 No. 70 >  May 23, 1957
TAXATION - REAL ESTATE EXCISE TAX
TAXATION ‑- REAL ESTATE EXCISE TAX(1) A deed naming no grantee which is given to a purchaser for a consideration vests equitable title in the purchaser, and the transaction constitutes a taxable sale.  Subsequent delivery of the deed by such purchaser to a third person named as grantee in the deed for consideration is also a taxable sale.
AGO 1954 No. 225 >  March 19, 1954
TAXATION - REAL ESTATE EXCISE TAX - APPLICABILITY TO TRANSFERS IN CORPORATE ORGANIZATION
TAXATION ‑- REAL ESTATE EXCISE TAX ‑- APPLICABILITY TO TRANSFERS IN CORPORATE ORGANIZATION Where an original corporation is divided into two new corporations, the real estate being transferred to one of the new corporations add the personalty to the other, the original corporation retaining all of the capital stock of the two new corporations, the transfer of real property from the original corporation to one of the new corporations constitutes a transfer subject to the real estate excise tax.  The amount of tax payable is based upon the fair market value of the stock in the new corporation which is retained by the original corporation.
AGO 1955 No. 25 >  February 17, 1955
REAL ESTATE EXCISE TAX - APPLICATION TO CONVEYANCE BY HUSBAND AND WIFE TO A CORPORATION FORMED UNDER A PROPERTY SETTLEMENT AGREEMENT IN EXCHANGE FOR CAPITAL STOCK OF THE CORPORATION
REAL ESTATE EXCISE TAX ‑- APPLICATION TO CONVEYANCE BY HUSBAND AND WIFE TO A CORPORATION FORMED UNDER A PROPERTY SETTLEMENT AGREEMENT IN EXCHANGE FOR CAPITAL STOCK OF THE CORPORATION. The real estate excise tax applies to a conveyance to a corporation by a husband and wife under a property settlement agreement which provides that a corporation be set up under the laws of the State of Washington and all community property be exchanged for the capital stock, divided as their interest appeared in the property.
AGO 1952 No. 446 >  December 22, 1952
COUNTIES - REAL ESTATE EXCISE TAX - MUNICIPAL CORPORATIONS - APPLICATION FOR REAL ESTATE SALES TAX - APPLICATION OF TAX UPON REVERTER FOR CONDITION BROKEN - INDUSTRIAL DEVELOPMENT DISTRICTS
COUNTIES ‑- REAL ESTATE EXCISE TAX ‑- MUNICIPAL CORPORATIONS, APPLICATION FOR REAL ESTATE SALES TAX ‑- APPLICATION OF TAX UPON REVERTER FOR CONDITION BROKEN ‑- INDUSTRIAL DEVELOPMENT DISTRICTS The county real estate sales tax is imposed upon the transfer of real property back to industrial development districts for condition of particular use broken pursuant to statute and/or deed.
AGO 1951 No. 158 >  October 29, 1951
REAL ESTATE EXCISE TAX - APPLICATION TO MERGER OF TWO CORPORATIONS
REAL ESTATE EXCISE TAX ‑- APPLICATION TO MERGER OF TWO CORPORATIONS A corporate merger is not a transfer of property as contemplated in the real estate excise tax, and therefore such tax does not apply.
AGO 1951 No. 169 >  November 13, 1951
REAL ESTATE EXCISE TAX
REAL ESTATE EXCISE TAX Real estate excise tax does not apply where vendor of real estate assigns his interest therein to third party.
AGO 1951 No. 120 >  September 5, 1951
TAXATION - SEPARATION AGREEMENTS - REAL ESTATE EXCISE TAX
TAXATION ‑- SEPARATION AGREEMENTS ‑- REAL ESTATE EXCISE TAX

1. The excise tax does not apply to property settlement agreements which the parties make with the intent that such agreements are not to become final and binding until so ordered by the court pursuant to a divorce proceeding.2. The excise tax does apply to property settlement agreements which the parties intend to be final and binding irrespective of the completion of a contemplated divorce proceeding.

AGLO 1977 No. 6 >  February 10, 1977
TAXATION - COUNTIES - REAL ESTATE EXCISE TAX - TRANSFER OF REAL PROPERTY BETWEEN PARENT AND SUBSIDIARY CORPORATIONS
TAXATION ‑- COUNTIES ‑- REAL ESTATE EXCISE TAX ‑- TRANSFER OF REAL PROPERTY BETWEEN PARENT AND SUBSIDIARY CORPORATIONS A transfer of an interest in real property by a parent corporation to a subsidiary corporation, or by a subsidiary corporation to a parent corporation, is not subject to the one percent real estate excise tax under chapter 28A.45 RCW where the transferee corporation does not issue or transfer stock certificates to the transferor corporation in exchange for the interest in real property thus transferred.
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