H-0613.1 _______________________________________________
HOUSE BILL 1421
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Representatives Ogden, Nelson, Mitchell, Franklin, Ferguson, Haugen, Cooper, Rayburn, Roland, Wood, Edmondson, Wynne, Nealey, Zellinsky, Ballard, Winsley, Paris, R. King, R. Meyers, Dellwo, Scott, Tate, Van Luven, Forner, Betrozoff, Wineberry, Leonard and Anderson.
Read first time January 29, 1991. Referred to Committee on Housing.
AN ACT Relating to sales of affordable housing; and amending RCW 82.45.010, 82.45.032, and 82.45.120.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.45.010 and 1981 c 93 s 1 are each amended to read as follows:
(1) As used in this chapter, the term "sale" shall have its ordinary meaning and shall include any conveyance, grant, assignment, quitclaim, or transfer of the ownership of or title to real property, including standing timber, or any estate or interest therein for a valuable consideration, and any contract for such conveyance, grant, assignment, quitclaim, or transfer, and any lease with an option to purchase real property, including standing timber, or any estate or interest therein or other contract under which possession of the property is given to the purchaser, or any other person by his direction, which title is retained by the vendor as security for the payment of the purchase price.
(2)
The term sale shall not include: (a) A transfer by gift, devise,
or inheritance, a transfer of any leasehold interest other than of the type
mentioned above((,)); (b) a cancellation or forfeiture of a
vendee's interest in a contract for the sale of real property, whether or not
such contract contains a forfeiture clause, or deed in lieu of foreclosure of a
mortgage or the assumption by a grantee of the balance owing on an obligation
which is secured by a mortgage or deed in lieu of forfeiture of the vendee's
interest in a contract of sale where no consideration passes otherwise or the
partition of property by tenants in common by agreement or as the result of a
court decree, any transfer, conveyance, or assignment of property or interest
in property from one spouse to the other in accordance with the terms of a
decree of divorce or in fulfillment of a property settlement agreement incident
thereto((,)); (c) the assignment or other transfer of a vendor's
interest in a contract for the sale of real property, even though accompanied
by a conveyance of the vendor's interest in the real property involved((,));
(d) transfers by appropriation or decree in condemnation proceedings
brought by the United States, the state or any political subdivision thereof,
or a municipal corporation((,)); (e)(i) a mortgage or other
transfer of an interest in real property merely to secure a debt, or (ii)
the assignment thereof((,)); (f)(i) any transfer or conveyance
made pursuant to an order of sale by the court in any mortgage or lien
foreclosure proceeding or upon execution of a judgment, or (ii) deed in
lieu of foreclosure to satisfy a mortgage((,)); (g) a conveyance
to the federal housing administration or veterans administration by an
authorized mortgagee made pursuant to a contract of insurance or guaranty with
the federal housing administration or veterans administration((, nor));
(h) a transfer in compliance with the terms of any lease or contract upon
which the tax as imposed by this chapter has been paid or where the lease or
contract was entered into prior to the date this tax was first imposed((,
nor)); (i) the sale of any grave or lot in an established cemetery((,
nor)); (j) a sale by or to the United States, this state or any
political subdivision thereof, or a municipal corporation of this state; or
(k) a sale of affordable housing project by or to a nonprofit community or
neighborhood-based organization eligible for assistance through the Washington
housing trust fund created in chapter 43.185 RCW.
(3)
The term sale shall further not include a transfer to a corporation or
partnership which is wholly owned by the transferor and/or the transferor's
spouse or children: PROVIDED, That if thereafter such transferee corporation
or partnership voluntarily transfers such real property, or such transferor,
spouse, or children voluntarily transfer stock in the transferee corporation or
interest in the transferee partnership capital, as the case may be, to other
than (((1))) (a) the transferor and/or the transferor's spouse or
children, (((2))) (b) a trust having the transferor and/or the
transferor's spouse or children as the only beneficiaries at the time of the
transfer to the trust, or (((3))) (c) a corporation or
partnership wholly owned by the original transferor and/or the transferor's
spouse or children, within five years of the original transfer to which this
exemption applies, excise taxes shall become due and payable on the original
transfer as otherwise provided by law.
Sec. 2. RCW 82.45.032 and 1986 c 211 s 1 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Real estate" or "real property" means real property but includes used mobile homes and used floating homes.
(2) "Used mobile home" means a mobile home which has been previously sold at retail and has been subjected to tax under chapter 82.08 RCW, or which has been previously used and has been subjected to tax under chapter 82.12 RCW, and which has substantially lost its identity as a mobile unit at the time of sale by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe connections with sewer, water, and other utilities.
(3) "Mobile home" means a mobile home as defined by RCW 46.04.302, as now or hereafter amended.
(4) "Used floating home" means a floating home in respect to which tax has been paid under chapter 82.08 or 82.12 RCW.
(5) "Floating home" means a building on a float used in whole or in part for human habitation as a single-family dwelling, which is not designed for self propulsion by mechanical means or for propulsion by means of wind, and which is on the property tax rolls of the county in which it is located.
(6) "Affordable housing project" means residential housing for rental or private ownership in which fifty-one percent or more of the dwelling units in the structure are occupied or owned by persons of low income as defined in RCW 35.21.685 and 36.32.415.
Sec. 3. RCW 82.45.120 and 1981 c 167 s 5 are each amended to read as follows:
The department of revenue is authorized and shall prescribe minimum standards for uniformity in reporting, application, and collection of the real estate excise tax imposed by this chapter.
The department of revenue shall also prescribe a real estate excise tax affidavit form which shall require the following:
(1) Identification of the seller and purchaser;
(2) Description of the property involved including the tax parcel or account number(s);
(3) Date of sale, type of instrument of sale, nature of transfer;
(4) Gross sales price;
(5) Whether or not the land is classified or designated as forest land under chapter 84.33 RCW; or classified as open space land, farm and agricultural land, or timberland under chapter 84.34 RCW; or classified as an affordable housing project under RCW 82.45.032; or at the time of sale exempt from property tax under chapter 84.36 RCW;
(6) Whether or not the property is land only, land with new building (new construction), or land with a previously used building; and
(7) The following questions, the responses to which are not required:
(a) Is this property at the time of sale subject to an elderly, disability, or physical improvement exemption?
(b) Does any building have a heat pump or solar heating or cooling system?
(c) Does this transaction divide a current parcel of land?
(d) Does this transaction include current crops or merchantable timber?
(e) Does this transaction involve a trade, a partial interest, corporate affiliates, related parties, a trust, a receivership, or an estate?
(f) Is the grantee acting as a nominee for a third party?
(g) Is the principal use of the land agricultural, apartments (four or more units), commercial, condominium, industrial, mobile home site, recreational, residential, or growing timber?
The affidavit form shall contain a statement of the potential compensating and additional tax liability under chapters 84.33 and 84.34 RCW, a statement of the collection of taxes under RCW 84.36.262 and 84.36.810, and a statement of the applicable penalties for perjury under chapter 9A.72 RCW.
Each county shall use the affidavit form prescribed and furnished by the department of revenue.
The affidavit shall be signed by either the seller or the buyer, or the agent of either, under oath attesting to all required information.