Controlling interest/REET

AN ACT Relating to clarifying the calculation of the real estate 1
excise tax for the transfer of a controlling interest in an entity 2
holding real property; amending RCW 82.45.030; and providing an 3
effective date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 82.45.030 and 2011 c 58 s 15 are each amended to 6
read as follows: 7
(1) As used in this chapter, the term "selling price" means the 8
true and fair value of the property conveyed. If property has been 9
conveyed in an arm's length transaction between unrelated persons for 10
a valuable consideration, a rebuttable presumption exists that the 11
selling price is equal to the total consideration paid or contracted 12
to be paid to the transferor, or to another for the transferor's 13
benefit. 14
(2) If the sale is a transfer of a controlling interest in an 15
entity with an interest in real property located in this state, the 16
selling price shall be the true and fair value of the real property 17
owned by the entity and located in this state , multiplied by the 18
percentage of the controlling interest being transferred . If the true 19
and fair value of the real property located in this state cannot 20
H-1555.1
HOUSE BILL 2009
State of Washington 69th Legislature 2025 Regular Session
By Representatives Salahuddin, Walen, and Parshley
Read first time 02/20/25. Referred to Committee on Finance.
p. 1 HB 2009
reasonably be determined, the selling price shall be determined 1
according to subsection (4) of this section. 2
(3) As used in this section, "total consideration paid or 3
contracted to be paid" includes money or anything of value, paid or 4
delivered or contracted to be paid or delivered in return for the 5
sale, and shall include the amount of any lien, mortgage, contract 6
indebtedness, or other incumbrance, either given to secure the 7
purchase price, or any part thereof, or remaining unpaid on such 8
property at the time of sale. 9
Total consideration shall not include the amount of any 10
outstanding lien or incumbrance in favor of the United States, the 11
state, or a municipal corporation for taxes, special benefits, or 12
improvements. 13
When a transfer or conveyance is made by deed in lieu of 14
foreclosure to satisfy a deed of trust, total consideration shall not 15
include the amount of any relocation assistance provided to the 16
transferor. 17
(4) If the total consideration for the sale cannot be ascertained 18
or the true and fair value of the property to be valued at the time 19
of the sale cannot reasonably be determined, the market value 20
assessment for the property maintained on the county property tax 21
rolls at the time of the sale shall be used as the selling price.22
NEW SECTION. Sec. 2. This act takes effect August 1, 2025.23
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p. 2 HB 2009