HOUSE BILL REPORT

HB 1870

BYRepresentatives Fox, Ferguson, Nutley, Spanel and Winsley

Revising the disclosure requirements on the real estate excise tax affidavit.

House Committe on Housing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (6)

      Signed by Representatives Nutley, Chair; Leonard, Vice Chair; Armstrong, Barnes, Sanders and J. Williams.

House Staff:Charlie Gavigan (786-7340)

AS REPORTED BY COMMITTEE ON HOUSING FEBRUARY 2, 1988

BACKGROUND:

An excise tax is assessed on the sale of real property.  The tax is paid to the treasurer of the county where the property is located.  The Department of Revenue is authorized by statute to provide rules and standards for uniformity in the reporting and collection of this tax throughout the state.

The Department of Revenue is also required by statute to provide a real estate excise tax affidavit.  This affidavit requires that certain information be listed, such as: (1) the identification of the seller and the purchaser, (2) a description of the property, (3) the date of the sale, and (4) the sales price.

The real estate excise tax affidavit lists several questions that are optional; that is, the party has available the choice of not providing the information.  One of these questions is "Does this transaction divide a current parcel of land?".

SUMMARY:

SUBSTITUTE BILL:  The question regarding whether the sales transaction divides a current parcel of land must be answered.  This information is no longer optional. The following is added to the list of mandatory information that must be provided in a real estate excise tax affidavit:  "Whether or not this transaction has been approved by local government pursuant to local government's land division regulation".

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The information regarding local government land use regulation is added.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Marshall Sanborn, San Juan County Official.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Making this question mandatory can enable the county officials to notify the person completing the affidavit that county regulations regarding plats and subdivisions must also be followed. This can avoid problems later regarding unapproved subdivisions or lots, such as additional costs or the denial of a building permit.

House Committee - Testimony Against:      None Presented.