WSR 10-01-042

PERMANENT RULES

DEPARTMENT OF REVENUE


[ Filed December 8, 2009, 11:10 a.m. , effective January 8, 2010 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: WAC 458-61A-302 Disposition of proceeds and affidavit batch transmittal, explains how the counties, the department of revenue, and the state treasurer process the taxes and administrative fees received under chapter 458-61A WAC, Real estate excise tax (REET).

The department is amending WAC 458-61A-302 to recognize provisions of HB 2170 (chapter 486, Laws of 2005). This legislation removed the dedication of the state portion of the REET "for the support of common schools." Additional editing changes to existing language in the rule have been made.

Citation of Existing Rules Affected by this Order: Amending WAC 458-61A-302 Disposition of proceeds and affidavit batch transmittal.

Statutory Authority for Adoption: RCW 34.05.353 (1)(a), 82.32.300, and 82.01.060(2).

Adopted under notice filed as WSR 09-19-077 on September 16, 2009.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: December 8, 2009.

Alan R. Lynn

Rules Coordinator

OTS-2685.1


AMENDATORY SECTION(Amending WSR 05-23-093, filed 11/16/05, effective 12/17/05)

WAC 458-61A-302   Disposition of proceeds and affidavit batch transmittal.   (1) Introduction. This rule explains how the counties, the department of revenue, and the state treasurer process the taxes and administrative fees received under this chapter.

(2) County treasurer. The county treasurer distributes the proceeds of the real estate excise tax along with the cash receipt journal summary in accordance with the provisions of chapters 82.45 and 82.46 RCW. When no real estate excise tax is due on a transaction, the county will collect an administrative fee for processing the real estate excise tax affidavit. RCW 82.45.180.

(3) Adjustments. Requests from county treasurers for adjustments to the funds that have been distributed to the state treasurer must be sent to the department for approval or denial. ((The department will forward to the state treasurer those requests that it approves.)) If the department denies a request for adjustment, the department will return the request to the county treasurer with an explanation for the denial.

(4) Tax paid directly to the department. Real estate excise tax for transfers of a controlling interest in an entity owning real property in Washington, and any other tax payment under this chapter made directly to the department, are remitted to the state treasurer for deposit in accordance with the provisions of chapter 82.45 RCW. ((The state treasurer deposits the proceeds of the state portion of the tax in the general fund for the support of the common schools.)) The state treasurer deposits and distributes the proceeds of any local taxes in accordance with the provisions of chapters 82.45 and 82.46 RCW.

(5) Affidavit batch transmittal.

(a) Due date. The county will submit copies of all the real estate excise tax affidavits for the entire month, together with a completed affidavit batch transmittal form, to the department by the fifth business day following the close of the month in which the tax was received. The affidavit batch must include all affidavits processed during the month, plus copies of any documents related to refunds made by the county.

(b) Alternate transmittal method. An alternate method for submitting affidavits may be used in lieu of the paper method described in this rule with the prior approval of the department. Use of an alternate method (e.g., electronic transmittal) requires a signed memorandum of understanding (MOU) between the county and the department.

(c) Distribution. The county will complete the affidavit transmittal form, supplied by the department, and send one copy with the affidavit batch to the department. ((The county will send a second copy of the affidavit batch transmittal with the monthly cash receipts journal summary to the state treasurer's office as documentation for the remittance of the real estate excise tax deposit.))

(d) Reporting of refunds. The county must report any refunds made during the month on the adjustment section provided on the batch transmittal form and attach all refund documentation.

(e) Retention of records. The county treasurer will retain the approved real estate excise tax affidavits, including any supplemental statements, for a period of not less than four years following the year in which the affidavit is received. See RCW 82.45.150 and 82.32.340.

[Statutory Authority: RCW 82.32.300, 82.01.060(2), and 82.45.150. 05-23-093, 458-61A-302, filed 11/16/05, effective 12/17/05.]

Washington State Code Reviser's Office