BILL REQ. #:  H-0756.2 

Read first time 01/19/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to requiring multiparcel real estate transactions to base the real estate excise tax on the greater of assessed value or purchase price; amending RCW 82.45.030; and creating a new section.

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

Sec. 1   RCW 82.45.030 and 1993 sp.s. c 25 s 503 are each amended to read as follows:
     (1)(a) As used in this chapter and except as otherwise provided in this section, the term "selling price" means the true and fair value of the property conveyed. If property has been conveyed in an arm's length transaction between unrelated persons for a valuable consideration, a rebuttable presumption exists that the selling price is equal to the total consideration paid or contracted to be paid to the transferor, or to another for the transferor's benefit.
     (2)(a) If the sale is a transfer of a controlling interest in an entity with an interest in real property located in this state, the selling price ((shall be)) is the true and fair value of the real property owned by the entity and located in this state. If the true and fair value of the real property located in this state cannot reasonably be determined, the selling price ((shall)) must be determined according to subsection (4) of this section.
     (b) If the sale is a transfer between an unrelated transferor and transferee and consists of five parcels or more, "selling price" means the greater of: (i) The total consideration paid or contracted to be paid to the transferor, or to another for the transferor's benefit; or (ii) the total value determined under subsection (4) of this section for the parcels. Separate sales between the same transferor and transferee, or persons related to the transferor and transferee, within any twelve-month period shall be aggregated for the purpose of determining whether the five parcel requirement is met.
     (3)(a) As used in this section, "total consideration paid or contracted to be paid" includes money or anything of value, paid or delivered or contracted to be paid or delivered in return for the sale, and shall include the amount of any lien, mortgage, contract indebtedness, or other incumbrance, either given to secure the purchase price, or any part thereof, or remaining unpaid on such property at the time of sale.
     (b) Total consideration ((shall)) does not include the amount of any outstanding lien or incumbrance in favor of the United States, the state, or a municipal corporation for taxes, special benefits, or improvements.
     (4) If the total consideration for the sale cannot be ascertained or the true and fair value of the property to be valued at the time of the sale cannot reasonably be determined, the market value assessment for the property maintained on the county property tax rolls at the time of the sale ((shall)) must be used as the selling price.

NEW SECTION.  Sec. 2   This act applies to transfers occurring on or after August 1, 2011.