SENATE BILL REPORT

SB 5276

BYSenator McDermott

Modifying provisions relating to taxation of real estate transactions.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 29, 1987

Senate Staff:William Bafus (786-7437)

AS OF JANUARY 26, 1987

BACKGROUND:

At present, real estate transactions are subject to two taxes; the conveyance tax under RCW 82.20, and the real estate excise tax under RCW 82.45.  Costs are incurred by both the Department of Revenue and local jurisdictions for the collection and administration of these two tax systems.  The Department of Revenue has estimated elsewhere that its costs for administration of the conveyance tax amount to approximately $46,000 per fiscal year.  (See the Bill Report for SB 5242.)

SUMMARY:

The conveyance tax statute, RCW 82.20, is repealed.  Real estate excise tax rates in RCW 82.45 are adjusted via amendment to recover the revenue lost thereby, and references are adjusted as required.

Revenue:    yes

Fiscal Note:      requested