<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto">Amy:<div><br></div><div>Even though the first two sales transferred a controlling interest, because the third transfer was within the three year look back period, I see no basis in the statute or regulation for the position that the third transfer is not part of the series that transferred control over a period less than a year. </div><div><br></div><div>“<span style="font-size: 1em; caret-color: rgb(77, 77, 77); font-family: "Droid Sans", Helvetica, Arial, sans-serif; -webkit-tap-highlight-color: rgba(0, 0, 0, 0); -webkit-text-size-adjust: 100%;">Beginning Jan. 1, 2020, the Legislature expanded the “lookback” period from 12 months to 36 months. Controlling interest transfers can occur over time and in stages through multiple sales. The “lookback” period is the timeframe over which multiple transfers are combined to determine whether a controlling interest has been transferred. See </span><a href="http://taxpedia.dor.wa.gov/documents/current%20eta/3216.2019.pdf" target="_blank" style="font-size: 1em; caret-color: rgb(77, 77, 77); font-family: "Droid Sans", Helvetica, Arial, sans-serif; -webkit-tap-highlight-color: rgba(0, 0, 0, 0); -webkit-text-size-adjust: 100%; box-sizing: border-box; color: rgb(170, 6, 255); text-decoration: none; background-position: 0px 0px;">ETA 3216.2019</a><span style="font-size: 1em; caret-color: rgb(77, 77, 77); font-family: "Droid Sans", Helvetica, Arial, sans-serif; -webkit-tap-highlight-color: rgba(0, 0, 0, 0); -webkit-text-size-adjust: 100%;"> for additional information.”</span></div><div><span style="font-size: 1em; caret-color: rgb(77, 77, 77); font-family: "Droid Sans", Helvetica, Arial, sans-serif; -webkit-tap-highlight-color: rgba(0, 0, 0, 0); -webkit-text-size-adjust: 100%;"><br></span></div><div><a href="https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax/real-estate-excise-tax-faqs">https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax/real-estate-excise-tax-faqs</a></div><div><br></div><div>John J. Sullivan</div><div><dl class="styled" style="font-size: 16px; box-sizing: border-box; margin: 1em 0px; position: relative; border: 0px; caret-color: rgb(77, 77, 77); color: rgb(77, 77, 77); font-family: "Droid Sans", Helvetica, Arial, sans-serif; -webkit-tap-highlight-color: rgba(0, 0, 0, 0); -webkit-text-size-adjust: 100%;"><dd class="active" style="box-sizing: border-box; line-height: 1.42857143; margin: 0px; color: rgb(0, 0, 0); padding: 25px 30px 30px; will-change: height; overflow: hidden !important;"><p style="box-sizing: border-box; margin: 0px 16px 0px 22px; font-size: 1em; line-height: 1.6em;"></p></dd></dl><div dir="ltr">Sent from my iPhone</div><div dir="ltr"><br><blockquote type="cite">On Mar 8, 2021, at 4:30 PM, Amy Allison <aallison@andersonhunterlaw.com> wrote:<br><br></blockquote></div><blockquote type="cite"><div dir="ltr">
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<p class="MsoNormal">I’m reaching out to see if anyone knows whether the controlling interest transfer time period “resets” after payment of excise tax.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Scenario would be that Member owns 75% of an LLC. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Member sells 25% in January. No excise tax due.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Member sells another 25% in July. Excise tax is due based on the FMV of the property.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">THEN Member sells her last 25% in December. Is excise tax due again or did the payment of the tax in July reset the 3 year period?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Amy C. Allison<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Anderson Hunter Law Firm, P.S.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">2707 Colby Ave. #1001<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Everett, WA 98201<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">(425) 252-5161<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Direct: (425) 303-3109<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Fax: (425) 258-3345<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><div><image001.jpg></div></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
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