S-0634.3  _______________________________________________

                         SENATE BILL 5471

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Benton and Stevens

Read first time 01/25/1999.  Referred to Committee on Ways & Means.

Reducing the real estate excise tax.

    AN ACT Relating to the excise tax on real estate sales; amending RCW 82.45.060; and adding a new section to chapter 82.45 RCW.

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

    Sec. 1.  RCW 82.45.060 and 1987 c 472 s 14 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) There is imposed an additional excise tax through June 30, 1989, upon each sale of real property at the rate of six one-hundredths of one percent of the selling price.  The tax imposed under this subsection shall be deposited in the conservation area account under RCW 79.71.110.))

NEW SECTION. Sec. 2.  A new section is added to chapter 82.45 RCW to read as follows:

    As used in this chapter, "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 RCW 82.45.060.  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.

                            --- END ---