Bulletin: WA2019001

Date:
May 28, 2019
To:
All Washington Issuing Offices
RE:
UNDERWRITING - Senate Bill 5998 an Act Establishing a Graduated Real Estate Excise Tax Scale

Dear Associates:

Senate Bill 5998 was enacted during the 2019 Regular Session and signed into law by the Governor on May 22, 2019. The main points of the Bill are that the current Excise Tax rate of 1.28% has been amended to reflect a graduated scale as follows,

1.1% for sales prices up to and including $500,000.00 

1.28% for sales prices over $500,000.00 up to and including $1,500,000.00

2.75% for sales prices over $1,500,000.00 up to and including $3,000,000.00

3% for sales prices greater than $3,000,000.00

Locally imposed taxes will raise these percentages to an actual percentage, yet to be established. The current rate of 1.28% is applied at either 1.53% or 1.78% based on additionally imposed local taxes. 

This Bulletin will be updated when the actual percentages are established prior to the Bill taking effect on January 1, 2020

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
WA2016001 LEGISLATIVE UPDATE - WA Legislative update
 
WA2016002 UNDERWRITING - Lack of Probate Affidavit for Real Estate Excise Tax, (“REET”) exemption
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None