H-0128.1  _______________________________________________

                          HOUSE BILL 1246

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Morris, Cairnes, Reardon, Carrell, Pennington, Crouse, Boldt, Dunn, Mielke, Edwards and D. Schmidt

Read first time 01/22/2001.  Referred to Committee on Finance.

Modifying the real estate excise tax.

    AN ACT Relating to the excise tax on real estate sales; and amending RCW 82.45.060.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 82.45.060 and 2000 c 103 s 15 are each amended to read as follows:

(1) There is imposed an excise tax upon each sale of real property at the rate of one and twenty-eight one-hundredths percent of the ((selling price)) net value.  An amount equal to seven and seven-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050.

(2) As used in this section, "net value" means the selling price less the basis in the property conveyed.  The "net value" will never be less than zero when determining the excise tax under this section.  The basis equals the selling price, as defined in RCW 82.45.030, that the seller offered as consideration to acquire the property.  A real estate developer may include service and material costs directly related to the development of the property conveyed as part of the basis.

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