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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">When I officed in Bellevue I registered my business per their requirements and paid their B&O tax every quarter.
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">Douglas W. Scott<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Law Offices of Douglas W. Scott<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Windermere Building<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif"">1810 15th Place NW, Suite 203<br>
Issaquah, Washington, 98027<br>
V. 425.392.8550<br>
F. 425-392-2829 <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><a href="http://www.davisscottlaw.com/">www.davisscottlaw.com</a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> Tuesday, July 19, 2016 11:42 AM<br>
<b>To:</b> 'WSBA Real Property Listserv'<br>
<b>Subject:</b> Re: [WSBARP] City tax on real estate sales<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Really? Are we talking about the same thing? The City of Oak Harbor (where my office is located) has been receiving my money for years to obtain an annual
“Business License” based on the number of my employees. <o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">
<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Josh Grant<br>
<b>Sent:</b> Tuesday, July 19, 2016 11:09 AM<br>
<b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject:</b> Re: [WSBARP] City tax on real estate sales<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">I agree with this with one exception. I believe only the Supreme Court can license attorneys and as a result I have always thought that a city could not demand a license of a
law firm. 3rd branch of government violation?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">Josh<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">Joshua F. Grant, PS<br>
Attorney at Law<br>
P. O. Box 619<br>
Wilbur, WA 99185<br>
tel 509 647 5578<br>
fax 509 647 2734<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">
</span><a href="mailto:scott@scottgthomaslaw.com" title="scott@scottgthomaslaw.com"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">scott scottgthomaslaw.com</span></a><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">
<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">Sent:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"> Monday, July 18, 2016 9:10 PM<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">To:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">
</span><a href="mailto:wsbarp@lists.wsbarppt.com" title="wsbarp@lists.wsbarppt.com"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">WSBA Real Property Listserv</span></a><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">
<o:p></o:p></span></p>
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<p class="MsoNormal" style="background:whitesmoke"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">Subject:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"> Re: [WSBARP] City tax on real
estate sales<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p><span style="font-family:"Calibri","sans-serif";color:black">It's an excellent question. And I am hoping that somebody smarter than I am will be able to answer it. Preferably somebody with a background in taxation. For the time-being, I think the starting
point is that local governments may impose regulatory fees under their police powers so long as the subject matter is local. And the scope of police power is broad, so long as the subject of the regulation (and the corresponding fee) bears a "reasonable and
substantial relation to promotion of the general welfare of the people." Business license are regulatory by nature - local governments use them as a vehicle to regulate land use, fire code enforcement, and other subjects (think marijuana sales, for example.)
On the other hand, local governments may impose a tax only pursuant to specific and explicit legislative or constitutional authority. We know all of this because of Covell v. City of Seattle, 127 Wn.2d 874, 905 P.2d 324 (1995). Covell cites three factors
to decide if a charge is a fee or a tax, and its progeny have tried to explain what Covell really meant. But I think it really comes down to location. So if the business activity is predominantly taking place within a local government's boundaries, the activity
is subject to local regulation, and may be licensed. In other words, a lawyer or an accountant who has an office within Tacoma City limits will need a business license, while a lawyer or accountant who only has a client - but not an office - will not need
a local business license. On the other hand, an electrician who provides services within the city will need a license even though the electrician does not have a shop in town, but the electrician driving into town to pick up electrical supplies will not need
a license so long as no physical labor is performed. And I'm not sure how FedEx or UPS fits into the equation, or lawyers who travel to a distant courthouse to argue a case. Or whether independent contractors, such as real estate brokers, should each have
an individual business license.<o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-family:"Calibri","sans-serif";color:black">On July 18, 2016 at 5:47 PM "Douglas W. Scott" <</span><a href="mailto:doug@davisscottlaw.com"><span style="font-family:"Calibri","sans-serif"">doug@davisscottlaw.com</span></a><span style="font-family:"Calibri","sans-serif";color:black">>
wrote:<o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:black">Thanks for your reply. The excise tax will be levied on the location of the property. As to the need to register to do business in Tacoma, by analogy,
if I represent a business in Tacoma and provide legal advice concerning that business, should I have to register to do business in Tacoma? Or if a Puyallup electrician works on a Tacoma home, is he required to register in Tacoma?
</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-msonormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:black">Douglas W. Scott</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-msonormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Law Offices of Douglas W. Scott</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-msonormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Windermere Building</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-msonormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:black">1810 15th Place NW, Suite 203<br>
Issaquah, Washington, 98027<br>
V. 425.392.8550<br>
F. 425-392-2829 </span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-msonormal"><a href="http://www.davisscottlaw.com/"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">www.davisscottlaw.com</span></a><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><strong><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">From:</span></strong><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">
</span><a href="mailto:wsbarp-bounces@lists.wsbarppt.com"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">wsbarp-bounces@lists.wsbarppt.com</span></a><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black"> [</span><a href="mailto:wsbarp-bounces@lists.wsbarppt.com"><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">mailto:wsbarp-bounces@lists.wsbarppt.com</span></a><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black">]
<strong><span style="font-family:"Tahoma","sans-serif"">On Behalf Of </span></strong>scott scottgthomaslaw.com<br>
<strong><span style="font-family:"Tahoma","sans-serif"">Sent:</span></strong> Monday, July 18, 2016 5:09 PM<br>
<strong><span style="font-family:"Tahoma","sans-serif"">To:</span></strong> WSBA Real Property Listserv<br>
<strong><span style="font-family:"Tahoma","sans-serif"">Subject:</span></strong> Re: [WSBARP] City tax on real estate sales</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
<p><span style="font-family:"Calibri","sans-serif";color:black">Yes, a city may require a license to conduct business within its jurisdiction. RCW 35.22.280 (32). Tacoma is a first class city. There are two real estate excise taxes that may be levied by
local government - REET 1 and REET 2 - pursuant to RCW 82.46.010 and 035. There is no authority to tax real estate commissions, which sounds suspiciously like an income tax.<o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal" style="margin-bottom:12.0pt"><span style="font-family:"Calibri","sans-serif";color:black">On July 18, 2016 at 3:58 PM "Douglas W. Scott" <</span><a href="mailto:doug@davisscottlaw.com"><span style="font-family:"Calibri","sans-serif"">doug@davisscottlaw.com</span></a><span style="font-family:"Calibri","sans-serif";color:black">>
wrote:<o:p></o:p></span></p>
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<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-family:"Calibri","sans-serif";color:black">I represent a real estate company outside of Tacoma. Tacoma saw a For Sale sign from my client within their city limits and has said that all persons
that engage in business in Tacoma must apply for a city business license. I imagine that in addition to a fee for this license they will want to charge a city tax on whatever commissions are derived from a real estate sale. My client has no office within Tacoma.
Can Tacoma do that?<o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-family:"Arial","sans-serif";color:black">Douglas W. Scott</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Law Offices of Douglas W. Scott</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Windermere Building</span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-family:"Arial","sans-serif";color:black">1810 15th Place NW, Suite 203<br>
Issaquah, Washington, 98027<br>
V. 425.392.8550<br>
F. 425-392-2829 </span><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><a href="http://www.davisscottlaw.com/"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">www.davisscottlaw.com</span></a><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
<p class="ox-aa0683f59f-ox-5f5835670a-msonormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="ox-aa0683f59f-msonormal"><span style="font-family:"Calibri","sans-serif";color:black">_______________________________________________<br>
WSBARP mailing list<br>
</span><a href="mailto:WSBARP@lists.wsbarppt.com"><span style="font-family:"Calibri","sans-serif"">WSBARP@lists.wsbarppt.com</span></a><span style="font-family:"Calibri","sans-serif";color:black"><br>
</span><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp"><span style="font-family:"Calibri","sans-serif"">http://mailman.fsr.com/mailman/listinfo/wsbarp</span></a><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">_______________________________________________<br>
WSBARP mailing list<br>
</span><a href="mailto:WSBARP@lists.wsbarppt.com"><span style="font-family:"Calibri","sans-serif"">WSBARP@lists.wsbarppt.com</span></a><span style="font-family:"Calibri","sans-serif";color:black"><br>
</span><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp"><span style="font-family:"Calibri","sans-serif"">http://mailman.fsr.com/mailman/listinfo/wsbarp</span></a><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">_______________________________________________<br>
WSBARP mailing list<br>
</span><a href="mailto:WSBARP@lists.wsbarppt.com"><span style="font-family:"Calibri","sans-serif"">WSBARP@lists.wsbarppt.com</span></a><span style="font-family:"Calibri","sans-serif";color:black"><br>
</span><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp"><span style="font-family:"Calibri","sans-serif"">http://mailman.fsr.com/mailman/listinfo/wsbarp</span></a><span style="font-family:"Calibri","sans-serif";color:black"><o:p></o:p></span></p>
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