[WSBARP] Purchaser's assignment of contract and 1% tax

[Jeanne Dawes]

Josh,

You pay the excise tax on the purchase price, whatever that is.  If it is a gift, it will be exempt, except if the donor is receiving debt relief, the excise tax will be on the balance of the debt amount (i.e. contract balance).  If the donor will continue to pay on the underlying debt, no excise tax.

Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Josh Grant
Sent: Thursday, November 12, 2015 3:38 PM
To: wsbar
Subject: [WSBARP] Purchaser's assignment of contract and 1% tax

It looks to me in reading WAC 458-61A-104(1)(b)
That when my client signs and records a Purchaser’s assignment of contract and deed, that in order to record the deed he has to pay 1.53% excise tax on the balance owing on the contract.
If so do you recite the balance owing on the contract on the deed?  The LPO forms seem to have it backward because they have us recite the amount owing on the contract on a Seller’s assignment of contract and deed form, but not on a purchaser’s assignment and deed; however the above WAC says that it is only payable on a purchaser’s assignment.???

Josh
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