| Passed by the Senate March 2, 2011 YEAS 48 BRAD OWEN ________________________________________ President of the Senate Passed by the House April 8, 2011 YEAS 95 FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5083 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
| Approved May 12, 2011, 1:48 p.m., with
the exception of Section 3 which is
vetoed. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | May 13, 2011 Secretary of State State of Washington |
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/13/11. Referred to Committee on Ways & Means.
AN ACT Relating to clarifying that the basis for business and occupation tax for real estate firms is the commission amount received by each real estate firm involved in a transaction; amending RCW 82.04.255; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature intends to clarify existing
law that the basis for determining the business and occupation tax for
real estate firms is the commission amount received by each real estate
firm involved in a real estate transaction. In clarifying existing
law, the legislature intends to preserve the historic method of
calculating business and occupation tax for real estate firms.
Sec. 2 RCW 82.04.255 and 1997 c 7 s 1 are each amended to read as
follows:
(1) Upon every person engaging within the state ((as a real estate
broker)) in the business of providing real estate brokerage services;
as to such persons, the amount of the tax with respect to such business
((shall be)) is equal to the gross income of the business, multiplied
by the rate of 1.5 percent.
(2) The measure of the tax on real estate commissions earned by the
real estate ((broker shall be)) firm is the gross commission earned by
the particular real estate ((brokerage office)) firm including that
portion of the commission paid to ((salesmen or associate)) brokers,
including designated and managing brokers, in the same ((office)) firm
on a particular transaction((: PROVIDED, HOWEVER, That where)).
However, when a real estate commission on a particular transaction is
divided ((between an originating brokerage office and a cooperating
brokerage office on a particular transaction, each brokerage office
shall)) among real estate firms at the closing of the transaction,
including a firm located out of state, each firm must pay the tax only
upon ((their)) its respective shares of said commission((: AND
PROVIDED FURTHER, That where the brokerage office)). Moreover, when
the real estate firm has paid the tax as provided herein, ((salesmen or
associate)) brokers, including designated and managing brokers, within
the same ((brokerage office shall)) real estate firm may not be
required to pay a similar tax upon the same transaction. If any firm
located out of state receives a share of commission on a particular
transaction, that company or broker must pay the tax based on the
requirements of this section and RCW 82.04.067.
(3) For the purposes of this section, "broker," "designated
broker," "managing broker," and "real estate firm" have the same
meaning as provided in RCW 18.85.011.
*NEW SECTION. Sec. 3 This act applies both prospectively and
retroactively.
*Sec. 3 was vetoed. See message at end of chapter.