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

[Rob Rowley]

In the Spokane County the Treasurer will routinely ‘flag’ any sale which is
20% or more below tax assessed value.  Easiest workaround is to attach a
copy of a purchase and sale agreement to the REETA which reflects the
discounted agreed-upon price. No issues.



I understand it to be a DOR directive.





*Robert R. Rowley* | Attorney at Law

7 S. Howard St, Suite 218

Spokane, WA  99201

Telephone: (509) 252-5074

Mobile: (509) 994-1143

Facsimile: (509) 928-3084

Email: rob at rowleylegal.com

Web Site: www.rowleylegal.com



Practice concentrated on business, real estate and general legal matters in
Washington and Idaho.



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*From:* wsbarp-bounces at lists.wsbarppt.com [mailto:
wsbarp-bounces at lists.wsbarppt.com] *On Behalf Of *Josh Grant
*Sent:* Tuesday, October 18, 2016 2:26 PM
*To:* wsbar <wsbarp at lists.wsbarppt.com>
*Subject:* [WSBARP] Low sale price - R.E. Excise Tax



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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