[WSBAPT] Excise Tax on Easement

[Bryce Dille]

WAC 458-61A-111 states that an excise tax affidavit is only required where  valuable consideration is given It states the affidavit is not required if not taxable and your transaction would not fall under that category since it is not taxable under the WACS you cited.

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Matt Yates
Sent: Friday, April 10, 2020 4:50 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Excise Tax on Easement

Hello Listmates.  Posting the question below for another attorney at my firm.  Any input is welcome since we have not encountered this issue before.

Two adjacent lots share a driveway.  The owners want to establish a mutual easement for use of the shared driveway before one of the properties is sold to a third party.  The driveway easement will straddle the property line 10 feet on each side, and both lot owners will drive over the easement.  I'm looking at the excise tax WACs and see no exemption for this transaction - WAC 458-61A-11 says easements are taxed.

No money is being exchanged - the parties are just trying to forestall any disputes about the use of the shared driveway before selling to someone they don't know (there's also an included road maintenance agreement that is new).  This transaction feels more akin to the boundary line adjustment exception under WAC 458-61A-109(2)(b) and example (3)(a).  I know it's not a boundary line dispute and no quit claim deed is being given, but it still feels like it's a resolution of a dispute over USE of the property.  Would WAC 458-61A-215 apply?  Again that exemption talks about quit claim deeds, not easements.

Am I missing an exemption here?

If it will be taxed, how do I determine the value of the property to be taxed?

Also, since each is giving an easement to the other, are there 2 transactions requiring two separate Affidavits and taxes to be paid? (I feel I'm overthinking this part).

Matthew D. Yates
Attorney at Law
Yates Marshall, PLLC
10000 NE 7th Avenue, Suite 200
Vancouver, WA 98685
Phone: (360) 449-6100
Fax: (360) 449-6111
matt at yatesmarshall.com<mailto:matt at yatesmarshall.com> (New Email Address)
www.yatesmarshall.com<http://www.yatesmarshall.com>

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