[WSBARP] Low sale price - R.E. Excise Tax

[Josh Grant]

I have a client who is purchasing real estate (written E.M. agreement) for $15,000. The county assessed FMV is about $110,000.  Buyer and seller are not related parties. No other consideration is being paid. The seller had tried unsuccessfully to sell these bare lots for several years, and just decided to get rid of them at what is clearly a very low price.

Title company says the County will “red tag “ this one. (which I take it means that they won’t accept the stated sale price for excise tax purposes).

Does the County get to charge excise tax on its FMV assessed value, notwithstanding this is a bona fide sale for the smaller amount?  Is there a procedure (buyer and seller doing declarations etc) to cause the county to accept the actual sale price for excise tax purposes?

thanks

Josh

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734
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