BILL REQ. #:  S-0408.2 

Read first time 01/18/13.   Referred to Committee on Governmental Operations .

     AN ACT Relating to exempting transfers of real property by operation of law or court order from the requirement to file a real estate excise tax affidavit; and amending RCW 82.45.090 and 82.45.197.

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

Sec. 1   RCW 82.45.090 and 2009 c 350 s 8 are each amended to read as follows:
     (1) Except for a sale of a beneficial interest in real property or the transfer by court order or by operation of law where no instrument evidencing the sale or transfer is recorded in the official real property records of the county in which the property is located, the tax imposed by this chapter ((shall)) must be paid to and collected by the treasurer of the county within which is located the real property ((which)) that was sold or transferred. In collecting the tax the treasurer ((shall)) must act as agent for the state. The county treasurer ((shall)) must cause a verification of payment evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales and used floating home sales. A receipt issued by the county treasurer for the payment of the tax imposed under this chapter ((shall be)) is evidence of the satisfaction of the lien imposed hereunder and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax ((shall)) may be accepted by the county auditor for filing or recording until the tax ((shall have been)) is paid and the verification of payment affixed thereto; in case the tax is not due on the transfer, the instrument ((shall)) may not be ((so)) accepted until suitable notation of such fact has been made on the instrument by the treasurer. Any time there is a sale of a used mobile home, used manufactured home, used park model, or used floating home that has not been title eliminated, property taxes must be current in order to complete the processing of the real estate excise tax affidavit or other documents transferring title. Verification that the property taxes are current must be noted on the mobile home real estate excise tax affidavit or on a form approved by the county treasurer. For the purposes of this subsection, "mobile home," "manufactured home," and "park model" have the same meaning as provided in RCW 59.20.030.
     (2) For a sale of a beneficial interest in real property where a tax is due under this chapter and where no instrument is recorded in the official real property records of the county in which the property is located, the sale ((shall)) must be reported to the department of revenue within five days from the date of the sale on such returns or forms and according to such procedures as the department may prescribe. Such forms or returns ((shall)) must be signed by both the transferor and the transferee and ((shall)) must be accompanied by payment of the tax due.
     (3) No real estate excise tax affidavit is required to evidence any transfer of real property by operation of law or by order of the court where no instrument of conveyance is recorded in the official records of the county in which the real property is located.
     (4) Any person who intentionally makes a false statement on any return or form required to be filed with the department under this chapter is guilty of perjury under chapter 9A.72 RCW.

Sec. 2   RCW 82.45.197 and 2008 c 269 s 1 are each amended to read as follows:
     In order to receive an exemption from the tax in this chapter on real property ((transferred)) for an instrument of conveyance recorded in the official records of the county in which the real property is located that evidences a transfer by operation of law or order of the court, as a result of inheritance as set forth under RCW 82.45.010(3)(a), the following documentation must be provided:
     (1) If the property is being transferred under the terms of a community property agreement, a copy of the recorded agreement and a certified copy of the death certificate;
     (2) If the property is being transferred under the terms of a trust instrument, a certified copy of the death certificate and a copy of the trust instrument showing the authority of the grantor;
     (3) If the property is being transferred under the terms of a probated will, a certified copy of the letters testamentary or in the case of intestate administration, a certified copy of the letters of administration showing that the grantor is the court-appointed executor, executrix, or administrator, and a certified copy of the death certificate;
     (4) In the case of joint tenants with right of survivorship and remainder interests, a certified copy of the death certificate is recorded to perfect title;
     (5) If the property is being transferred pursuant to a court order, a certified copy of the court order requiring the transfer, and confirming that the grantor is required to do so under the terms of the order; or
     (6) If the community property interest of the decedent is being transferred to a surviving spouse or surviving domestic partner absent the documentation set forth in subsections (1) through (5) of this section, a certified copy of the death certificate and a signed affidavit from the surviving spouse or surviving domestic partner affirming that he or she is the sole and rightful heir to the property.