[WSBAPT] FW: Proposed changes in REET gift exemption WAC 458-61A-201

[Eric Nelsen]

Apologies for cross-posting, but I thought estate planners would be interested in these proposed changes to the real estate excise tax exemption for gifts. Please see below.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

From: Eric Nelsen
Sent: Monday, October 9, 2023 9:51 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Proposed changes in REET gift exemption WAC 458-61A-201

Rulemaking process has started to amend WAC 458-61A-201, to try to clarify how the gift exemption from real estate excise tax works when there is underlying debt secured by the property. I haven't read through it thoroughly yet but it does include a rebuttable presumption that the tax should be paid on the whole debt if there is a due-on-sale clause in the lien instrument.

I always find gifts with underlying debt a bit tricky to figure out, so I hope we can help DOR get this right. Here's the rulemaking agenda<https://dor.wa.gov/laws-rules/rule-making-agenda> that sets a hearing for October 25 at 10:00 a.m. Must pre-register in order to join the meeting.

The proposed amendment to the WAC is here<https://dor.wa.gov/sites/default/files/2023-10/61A-201cr1frmdraftSept23.pdf?uid=651f4a6abd37f>. The person to contact at DOR is Darius Massoudi; his contact info is on the cover page to the proposed amendment.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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