|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.|