[WSBARP] May a PSA require buyer to pay REET?

[Bickel, Dwight]

The parties may agree for the buyer to pay the real estate sales tax. Your contract does that, because state excise law does not prohibit the payment of that tax by the buyer.

It is a math challenge though, because the sales tax applies to the amount of the sales tax. You must compute the revised sales price upon which the tax is computed.

Original Sales Price divided by
(1-[Applicable Excise Tax Rate])

For example: 100,000 price becomes $101,812.26 adjusted sales tax where the rate is .0178%.
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