[WSBARP] "Excise" versus "Transfer"

[Jay Goldstein]

I would say the parties may contract for who is responsible, but per the statute, it’s seller’s responsibility if buyer doesn’t pay.

Jay A. Goldstein
[Logo Color 946x243 pixels]
1800 Cooper Point RD SW NO. 8  |  Olympia, WA 98502
Telephone 360.352.1970  |  Fax 360.357.0844 |  www.jaglaw.net<http://www.jaglaw.net/>
jay at jaglaw.net<mailto:jay at jaglaw.net>

Nothing contained herein should be construed as legal advice.
The purpose of this email is to transmit a message or document.
Should you not be the intended recipient of this email message,
please reply advising of the mistake and then delete this message
from your computer. Should you have any questions,
please call the Sender at 360-352-1970.
No trees were killed in sending this message
(however, a large number of electrons were terribly inconvenienced).

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Craig Blackmon
Sent: Thursday, May 25, 2017 1:30 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] "Excise" versus "Transfer"

Per RCW 82.45.080: "The tax levied under this chapter is the obligation of the seller...."  Can the parties contractually shift this statutory burden? I've argued "no" before...

Craig

Craig Blackmon, Attorney at Law
Seattle Real Estate Lawyer<http://www.seattlepropertylawyer.com/>
92 Lenora St. (The Makers Space, a shared work environment)
Seattle WA 98121
Office/Cell: (206) 369-5949   Fax: (206) 770-7328
@LawyerBroker<https://twitter.com/LawyerBroker>
How to Buy Without an Agent<http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent> | How to Sell FSBO<http://www.seattlepropertylawyer.com/blog?category=Sell+FSBO> | RE Glossary<http://www.seattlepropertylawyer.com/blog?category=Real+Estate+Glossary>
CONFIDENTIALITY NOTICE: This communication is a private, confidential electronic communication encompassed by 18 USC 2510. It is for the sole use of the intended recipient and receipt by anyone other than the intended recipient does not constitute a loss of its confidential or privileged nature.  Any review or distribution by others is strictly prohibited. If you are not the intended recipient please inform the sender and destroy all copies.

On Thu, May 25, 2017 at 1:09 PM, Bickel, Dwight <Dwight.Bickel at fntg.com<mailto:Dwight.Bickel at fntg.com>> wrote:
It might help people understand if you called it by the correct name; it is a real estate sales tax. There should be no reasonable debate that it is a transfer tax.

If the buyer agrees in a real estate purchase and sale agreement to pay the real estate sales tax, the amount paid by the purchaser is additional consideration that must be added to the price that is also taxed.

Computing the extra tax on the increased taxable amount requires a bit of algebra [see, we really did need to learn it!]:
Initial Purchase Price / (1.00 – [local excise tax rate (.0228)]) = Adjusted Purchase Price subject to tax
Thus, a $250,000 price in an area with that tax rate, divided by .9772, results in an adjusted price of $255,832.99.

________________________________
NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. If you are not the intended recipient of this communication, you are hereby notified to: (i) delete the message and all copies; (ii) do not disclose, distribute or use the message in any manner; and (iii) notify the sender immediately.

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com<mailto:WSBARP at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbarp

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20170525/cbf0a6a9/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 6396 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20170525/cbf0a6a9/image001.jpg>