[WSBARP] Proposed changes in REET gift exemption WAC 458-61A-201

[Eric Nelsen]

Rulemaking process has started to amend WAC 458-61A-201, to try to clarify how the gift exemption from real estate excise tax works when there is underlying debt secured by the property. I haven't read through it thoroughly yet but it does include a rebuttable presumption that the tax should be paid on the whole debt if there is a due-on-sale clause in the lien instrument.

I always find gifts with underlying debt a bit tricky to figure out, so I hope we can help DOR get this right. Here's the rulemaking agenda<https://dor.wa.gov/laws-rules/rule-making-agenda> that sets a hearing for October 25 at 10:00 a.m. Must pre-register in order to join the meeting.

The proposed amendment to the WAC is here<https://dor.wa.gov/sites/default/files/2023-10/61A-201cr1frmdraftSept23.pdf?uid=651f4a6abd37f>. The person to contact at DOR is Darius Massoudi; his contact info is on the cover page to the proposed amendment.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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