WSR 06-10-091

EXPEDITED RULES

DEPARTMENT OF REVENUE


[ Filed May 3, 2006, 11:25 a.m. ]

Title of Rule and Other Identifying Information: WAC 458-61A-207 Bankruptcy, this rule explains the exemption from real state excise tax for transfers of real property under confirmed chapter 11 or confirmed chapter 12 bankruptcy plans.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Margaret J. Partlow, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, fax (360) 586-5543, e-mail margaretpa@dor.wa.gov , AND RECEIVED BY July 5, 2006.


Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department is proposing minor editing changes to the rule to clarify existing language of the rule. These editing changes do not change the effect of the existing rule. A copy of the proposed rule is available for viewing and printing on our web site at http://dor.wa.gov/content/laws/RuleMaking/default.aspx.

Reasons Supporting Proposal: To reduce potential confusion.

Statutory Authority for Adoption: RCW 82.32.300, 82.45.150, and 82.01.060(2).

Statute Being Implemented: Chapter 82.45 RCW as it applies to bankruptcy situations.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of revenue, governmental.

Name of Agency Personnel Responsible for Drafting: Margaret J. Partlow, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-6123; Implementation and Enforcement: Stuart Thronson, 1025 Union Avenue S.E., Suite #100, Olympia, WA, (360) 570-3230.

May 2, 2006

Alan R. Lynn

Rules Coordinator

OTS-8847.1


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

WAC 458-61A-207   Bankruptcy.   (1) Introduction. The real estate excise tax does not apply to the conveyance of real property by a trustee in bankruptcy or debtor in possession made ((under either a)) after the plan is confirmed under a chapter 11 ((plan)) or ((a confirmed)) chapter 12 plan. Federal law preempts real estate excise tax on these transfers.

(2) Documentation requirements. A copy of the Order of Confirmation or an extract from the Confirmed Bankruptcy Plan, showing the date the bankruptcy plan was confirmed, the court case cause number, and the bankruptcy chapter number must be attached to the real estate excise affidavit provided to the department.

[Statutory Authority: RCW 82.32.300, 82.01.060(2), and 82.45.150. 05-23-093, 458-61A-207, filed 11/16/05, effective 12/17/05.]

Washington State Code Reviser's Office