[WSBARP] City tax on real estate sales

[Douglas W. Scott]

Thanks for your reply. The excise tax will be levied on the location of the property.  As to the need to register to do business in Tacoma, by analogy, if I represent a business in Tacoma and provide legal advice concerning that business, should I have to register to do business in Tacoma? Or if a Puyallup electrician works on a Tacoma home, is he required to register in Tacoma?

Douglas W. Scott
Law Offices of Douglas W. Scott
Windermere Building
1810 15th Place NW, Suite 203
Issaquah, Washington, 98027
V.  425.392.8550
F.  425-392-2829
www.davisscottlaw.com<http://www.davisscottlaw.com/>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of scott scottgthomaslaw.com
Sent: Monday, July 18, 2016 5:09 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] City tax on real estate sales


Yes, a city may require a license to conduct business within its jurisdiction.  RCW 35.22.280 (32).  Tacoma is a first class city.  There are two real estate excise taxes that may be levied by local government - REET 1 and REET 2 - pursuant to RCW 82.46.010 and 035.  There is no authority to tax real estate commissions, which sounds suspiciously like an income tax.
On July 18, 2016 at 3:58 PM "Douglas W. Scott" <doug at davisscottlaw.com<mailto:doug at davisscottlaw.com>> wrote:

I represent a real estate company outside of Tacoma.  Tacoma saw a For Sale sign from my client within their city limits and has said that all persons that engage in business in Tacoma must apply for a city business license. I imagine that in addition to a fee for this license they will want to charge a city tax on whatever commissions are derived from a real estate sale. My client has no office within Tacoma. Can Tacoma do that?



Douglas W. Scott

Law Offices of Douglas W. Scott

Windermere Building

1810 15th Place NW, Suite 203
Issaquah, Washington, 98027
V.  425.392.8550
F.  425-392-2829

www.davisscottlaw.com<http://www.davisscottlaw.com/>




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