| SB 5083 - DIGEST |
| (DIGEST AS ENACTED) |
Clarifies 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. |
Preserves the historic method of calculating business and occupation tax for real estate firms. |
| VETO MESSAGE ON SB 5083 |
| May 12, 2011 |
| To the Honorable President and Members, |
| The Senate of the State of Washington |
| Ladies and Gentlemen: |
| I am returning herewith, without my approval as to Section 3, Senate Bill 5083 entitled: |
"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." |
| Senate Bill 5083 provides that when a real estate commission on a particular transaction is divided among real estate firms at the closing of the transaction, each firm must pay the tax only upon its respective share. |
| Section 3 would apply this act both prospectively and retroactively. The retroactive application of the bill would reward delinquent taxpayers while those who paid on time would not receive a refund under the prohibition on the gift of state funds in Article VIII, Section 5 of the Washington Constitution, as interpreted by the Washington Supreme Court. |
| For this reason, I have vetoed Section 3 of Senate Bill 5083. |
| With the exception of Section 3, Senate Bill 5083 is approved. |
| Respectfully submitted, |
| Christine Gregoire |
| Governor |