Recording fees/escrow tax

AN ACT Relating to clarifying the excise tax treatment of amounts 1
received by title and escrow businesses from clients for remittance 2
to a county filing office for the purpose of recording documents; 3
reenacting and amending RCW 82.04.050; adding a new section to 4
chapter 82.04 RCW; creating new sections; and providing an effective 5
date. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. (1) The legislature finds that the 8
department of revenue has recently assessed title and escrow 9
businesses for failing to collect and pay sales and use and business 10
and occupation tax on recording surcharges.11
(2) The legislature finds the department of revenue has not 12
issued rule making or guidance notifying the industry of its 13
obligation to collect and pay sales and use and business and 14
occupation tax on recording surcharges. 15
(3) The legislature finds that some title and escrow companies 16
have been assessed large sums of back taxes for failure to pay sales 17
and use and business and occupation tax on recording surcharges, 18
which creates a severe hardship for these entities, most of which are 19
small independent businesses. 20
S-0413.1
SENATE BILL 5111
State of Washington 69th Legislature 2025 Regular Session
By Senators Chapman, Dozier, Christian, Krishnadasan, and Schoesler
Prefiled 12/23/24. Read first time 01/13/25. Referred to Committee
on Ways & Means.
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(4) The legislature also finds that on February 27, 2024, the 1
court of appeals of the state of Washington, division II, published 2
an opinion in BIAW v. The State of Washington and, in that opinion, 3
the court of appeals concluded that Washington's document recording 4
surcharge is an excise tax rather than a fee because the 5
"overwhelming purpose of the surcharge is to alleviate the housing 6
crisis by financing certain funds, which is a desired public benefit. 7
Only one percent of the total surcharge, $1.83, is distributed and 8
used by the county auditor for its surcharge collection activities."9
(5) Therefore, it is the intent of the legislature to declare 10
that it is the policy of the state that sales and use and business 11
and occupation taxes may not be levied on a document recording 12
surcharge, which the court of appeals has concluded is an excise tax.13
Sec. 2. RCW 82.04.050 and 2021 c 296 s 8 and 2021 c 143 s 2 are 14
each reenacted and amended to read as follows: 15
(1)(a) "Sale at retail" or "retail sale" means every sale of 16
tangible personal property (including articles produced, fabricated, 17
or imprinted) to all persons irrespective of the nature of their 18
business and including, among others, without limiting the scope 19
hereof, persons who install, repair, clean, alter, improve, 20
construct, or decorate real or personal property of or for consumers 21
other than a sale to a person who: 22
(i) Purchases for the purpose of resale as tangible personal 23
property in the regular course of business without intervening use by 24
such person, but a purchase for the purpose of resale by a regional 25
transit authority under RCW 81.112.300 is not a sale for resale; or26
(ii) Installs, repairs, cleans, alters, imprints, improves, 27
constructs, or decorates real or personal property of or for 28
consumers, if such tangible personal property becomes an ingredient 29
or component of such real or personal property without intervening 30
use by such person; or 31
(iii) Purchases for the purpose of consuming the property 32
purchased in producing for sale as a new article of tangible personal 33
property or substance, of which such property becomes an ingredient 34
or component or is a chemical used in processing, when the primary 35
purpose of such chemical is to create a chemical reaction directly 36
through contact with an ingredient of a new article being produced 37
for sale; or 38
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(iv) Purchases for the purpose of consuming the property 1
purchased in producing ferrosilicon which is subsequently used in 2
producing magnesium for sale, if the primary purpose of such property 3
is to create a chemical reaction directly through contact with an 4
ingredient of ferrosilicon; or 5
(v) Purchases for the purpose of providing the property to 6
consumers as part of competitive telephone service, as defined in RCW 7
82.04.065; or 8
(vi) Purchases for the purpose of satisfying the person's 9
obligations under an extended warranty as defined in subsection (7) 10
of this section, if such tangible personal property replaces or 11
becomes an ingredient or component of property covered by the 12
extended warranty without intervening use by such person.13
(b) The term includes every sale of tangible personal property 14
that is used or consumed or to be used or consumed in the performance 15
of any activity defined as a "sale at retail" or "retail sale" even 16
though such property is resold or used as provided in (a)(i) through 17
(vi) of this subsection following such use. 18
(c) The term also means every sale of tangible personal property 19
to persons engaged in any business that is taxable under RCW 20
82.04.280(1) (a), (b), and (g), 82.04.290, and 82.04.2908.21
(2) The term "sale at retail" or "retail sale" includes the sale 22
of or charge made for tangible personal property consumed and/or for 23
labor and services rendered in respect to the following:24
(a) The installing, repairing, cleaning, altering, imprinting, or 25
improving of tangible personal property of or for consumers, 26
including charges made for the mere use of facilities in respect 27
thereto, but excluding charges made for the use of self-service 28
laundry facilities, and also excluding sales of laundry service to 29
nonprofit health care facilities, and excluding services rendered in 30
respect to live animals, birds and insects; 31
(b) The constructing, repairing, decorating, or improving of new 32
or existing buildings or other structures under, upon, or above real 33
property of or for consumers, including the installing or attaching 34
of any article of tangible personal property therein or thereto, 35
whether or not such personal property becomes a part of the realty by 36
virtue of installation, and also includes the sale of services or 37
charges made for the clearing of land and the moving of earth 38
excepting the mere leveling of land used in commercial farming or 39
agriculture; 40
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(c) The constructing, repairing, or improving of any structure 1
upon, above, or under any real property owned by an owner who conveys 2
the property by title, possession, or any other means to the person 3
performing such construction, repair, or improvement for the purpose 4
of performing such construction, repair, or improvement and the 5
property is then reconveyed by title, possession, or any other means 6
to the original owner; 7
(d) The cleaning, fumigating, razing, or moving of existing 8
buildings or structures, but does not include the charge made for 9
janitorial services; and for purposes of this section the term 10
"janitorial services" means those cleaning and caretaking services 11
ordinarily performed by commercial janitor service businesses 12
including, but not limited to, wall and window washing, floor 13
cleaning and waxing, and the cleaning in place of rugs, drapes and 14
upholstery. The term "janitorial services" does not include painting, 15
papering, repairing, furnace or septic tank cleaning, snow removal or 16
sandblasting; 17
(e) Automobile towing and similar automotive transportation 18
services, but not in respect to those required to report and pay 19
taxes under chapter 82.16 RCW; 20
(f) The furnishing of lodging and all other services by a hotel, 21
rooming house, tourist court, motel, trailer camp, and the granting 22
of any similar license to use real property, as distinguished from 23
the renting or leasing of real property, and it is presumed that the 24
occupancy of real property for a continuous period of one month or 25
more constitutes a rental or lease of real property and not a mere 26
license to use or enjoy the same. For the purposes of this 27
subsection, it is presumed that the sale of and charge made for the 28
furnishing of lodging for a continuous period of one month or more to 29
a person is a rental or lease of real property and not a mere license 30
to enjoy the same. For the purposes of this section, it is presumed 31
that the sale of and charge made for the furnishing of lodging 32
offered regularly for public occupancy for periods of less than a 33
month constitutes a license to use or enjoy the property subject to 34
sales and use tax and not a rental or lease of property;35
(g) The installing, repairing, altering, or improving of digital 36
goods for consumers; 37
(h) Persons taxable under (a), (b), (c), (d), (e), (f), and (g) 38
of this subsection when such sales or charges are for property, labor 39
and services which are used or consumed in whole or in part by such 40
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persons in the performance of any activity defined as a "sale at 1
retail" or "retail sale" even though such property, labor and 2
services may be resold after such use or consumption. Nothing 3
contained in this subsection may be construed to modify subsection 4
(1) of this section and nothing contained in subsection (1) of this 5
section may be construed to modify this subsection.6
(3) The term "sale at retail" or "retail sale" includes the sale 7
of or charge made for personal, business, or professional services 8
including amounts designated as interest, rents, fees, admission, and 9
other service emoluments however designated, received by persons 10
engaging in the following business activities: 11
(a) Abstract((,)) and title insurance((, and escrow)) services;12
(b) Credit bureau services; 13
(c) Automobile parking and storage garage services;14
(d) Landscape maintenance and horticultural services but 15
excluding (i) horticultural services provided to farmers and (ii) 16
pruning, trimming, repairing, removing, and clearing of trees and 17
brush near electric transmission or distribution lines or equipment, 18
if performed by or at the direction of an electric utility;19
(e) Service charges associated with tickets to professional 20
sporting events; 21
(f) The following personal services: Tanning salon services, 22
tattoo parlor services, steam bath services, turkish bath services, 23
escort services, and dating services; ((and))24
(g) Escrow agent services, as described in RCW 18.44.011 (7) and 25
(8) and 18.44.021(1), that do not include amounts remitted to a 26
county filing office for the purpose of recording documents, if 27
separately identified on a settlement statement, HUD-1, or closing 28
disclosure; and29
(h)(i) Operating an athletic or fitness facility, including all 30
charges for the use of such a facility or for any associated services 31
and amenities, except as provided in (((g))) (h)(ii) of this 32
subsection. 33
(ii) Notwithstanding anything to the contrary in (((g))) (h)(i) 34
of this subsection (3), the term "sale at retail" and "retail sale" 35
under this subsection does not include: 36
(A) Separately stated charges for the use of an athletic or 37
fitness facility where such use is primarily for a purpose other than 38
engaging in or receiving instruction in a physical fitness activity;39
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(B) Separately stated charges for the use of a discrete portion 1
of an athletic or fitness facility, other than a pool, where such 2
discrete portion of the facility does not by itself meet the 3
definition of "athletic or fitness facility" in this subsection;4
(C) Separately stated charges for services, such as advertising, 5
massage, nutritional consulting, and body composition testing, that 6
do not require the customer to engage in physical fitness activities 7
to receive the service. The exclusion in this subsection (3)(((g))) 8
(h)(ii)(C) does not apply to personal training services and 9
instruction in a physical fitness activity; 10
(D) Separately stated charges for physical therapy provided by a 11
physical therapist, as those terms are defined in RCW 18.74.010, or 12
occupational therapy provided by an occupational therapy 13
practitioner, as those terms are defined in RCW 18.59.020, when 14
performed pursuant to a referral from an authorized health care 15
practitioner or in consultation with an authorized health care 16
practitioner. For the purposes of this subsection (3)(((g))) (h)17
(ii)(D), an authorized health care practitioner means a health care 18
practitioner licensed under chapter 18.83, 18.25, 18.36A, 18.57, 19
18.71, or 18.71A RCW, or, until July 1, 2022, chapter 18.57A RCW;20
(E) Rent or association fees charged by a landlord or residential 21
association to a tenant or residential owner with access to an 22
athletic or fitness facility maintained by the landlord or 23
residential association, unless the rent or fee varies depending on 24
whether the tenant or owner has access to the facility;25
(F) Services provided in the regular course of employment by an 26
employee with access to an athletic or fitness facility maintained by 27
the employer for use without charge by its employees or their family 28
members; 29
(G) The provision of access to an athletic or fitness facility by 30
an educational institution to its students and staff. However, 31
charges made by an educational institution to its alumni or other 32
members of the public for the use of any of the educational 33
institution's athletic or fitness facilities are a retail sale under 34
this subsection (3)(((g))) (h). For purposes of this subsection (3)35
(((g))) (h)(ii)(G), "educational institution" has the same meaning as 36
in RCW 82.04.170; 37
(H) Yoga, chi gong, or martial arts classes, training, or events 38
held at a community center, park, school gymnasium, college or 39
university, hospital or other medical facility, private residence, or 40
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any other facility that is not operated within and as part of an 1
athletic or fitness facility. 2
(iii) Nothing in (((g))) (h)(ii) of this subsection (3) may be 3
construed to affect the taxation of sales made by the operator of an 4
athletic or fitness facility, where such sales are defined as a 5
retail sale under any provision of this section other than this 6
subsection (3). 7
(iv) For the purposes of this subsection (3)(((g))) (h), the 8
following definitions apply: 9
(A) "Athletic or fitness facility" means an indoor or outdoor 10
facility or portion of a facility that is primarily used for: 11
Exercise classes; strength and conditioning programs; personal 12
training services; tennis, racquetball, handball, squash, or 13
pickleball; or other activities requiring the use of exercise or 14
strength training equipment, such as treadmills, elliptical machines, 15
stair climbers, stationary cycles, rowing machines, pilates 16
equipment, balls, climbing ropes, jump ropes, and weightlifting 17
equipment. 18
(B) "Martial arts" means any of the various systems of training 19
for physical combat or self-defense. "Martial arts" includes, but is 20
not limited to, karate, kung fu, tae kwon do, Krav Maga, boxing, 21
kickboxing, jujitsu, shootfighting, wrestling, aikido, judo, hapkido, 22
Kendo, tai chi, and mixed martial arts. 23
(C) "Physical fitness activities" means activities that involve 24
physical exertion for the purpose of improving or maintaining the 25
general fitness, strength, flexibility, conditioning, or health of 26
the participant. "Physical fitness activities" includes participating 27
in yoga, chi gong, or martial arts. 28
(4)(a) The term also includes the renting or leasing of tangible 29
personal property to consumers. 30
(b) The term does not include the renting or leasing of tangible 31
personal property where the lease or rental is for the purpose of 32
sublease or subrent. 33
(5) The term also includes the providing of "competitive 34
telephone service," "telecommunications service," or "ancillary 35
services," as those terms are defined in RCW 82.04.065, to consumers.36
(6)(a) The term also includes the sale of prewritten computer 37
software to a consumer, regardless of the method of delivery to the 38
end user. For purposes of (a) and (b) of this subsection, the sale of 39
prewritten computer software includes the sale of or charge made for 40
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a key or an enabling or activation code, where the key or code is 1
required to activate prewritten computer software and put the 2
software into use. There is no separate sale of the key or code from 3
the prewritten computer software, regardless of how the sale may be 4
characterized by the vendor or by the purchaser. 5
(b) The term "retail sale" does not include the sale of or charge 6
made for: 7
(i) Custom software; or 8
(ii) The customization of prewritten computer software.9
(c)(i) The term also includes the charge made to consumers for 10
the right to access and use prewritten computer software, where 11
possession of the software is maintained by the seller or a third 12
party, regardless of whether the charge for the service is on a per 13
use, per user, per license, subscription, or some other basis.14
(ii)(A) The service described in (c)(i) of this subsection (6) 15
includes the right to access and use prewritten computer software to 16
perform data processing. 17
(B) For purposes of this subsection (6)(c)(ii), "data processing" 18
means the systematic performance of operations on data to extract the 19
required information in an appropriate form or to convert the data to 20
usable information. Data processing includes check processing, image 21
processing, form processing, survey processing, payroll processing, 22
claim processing, and similar activities. 23
(7) The term also includes the sale of or charge made for an 24
extended warranty to a consumer. For purposes of this subsection, 25
"extended warranty" means an agreement for a specified duration to 26
perform the replacement or repair of tangible personal property at no 27
additional charge or a reduced charge for tangible personal property, 28
labor, or both, or to provide indemnification for the replacement or 29
repair of tangible personal property, based on the occurrence of 30
specified events. The term "extended warranty" does not include an 31
agreement, otherwise meeting the definition of extended warranty in 32
this subsection, if no separate charge is made for the agreement and 33
the value of the agreement is included in the sales price of the 34
tangible personal property covered by the agreement. For purposes of 35
this subsection, "sales price" has the same meaning as in RCW 36
82.08.010. 37
(8)(a) The term also includes the following sales to consumers of 38
digital goods, digital codes, and digital automated services:39
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(i) Sales in which the seller has granted the purchaser the right 1
of permanent use; 2
(ii) Sales in which the seller has granted the purchaser a right 3
of use that is less than permanent; 4
(iii) Sales in which the purchaser is not obligated to make 5
continued payment as a condition of the sale; and 6
(iv) Sales in which the purchaser is obligated to make continued 7
payment as a condition of the sale. 8
(b) A retail sale of digital goods, digital codes, or digital 9
automated services under this subsection (8) includes any services 10
provided by the seller exclusively in connection with the digital 11
goods, digital codes, or digital automated services, whether or not a 12
separate charge is made for such services. 13
(c) For purposes of this subsection, "permanent" means perpetual 14
or for an indefinite or unspecified length of time. A right of 15
permanent use is presumed to have been granted unless the agreement 16
between the seller and the purchaser specifies or the circumstances 17
surrounding the transaction suggest or indicate that the right to use 18
terminates on the occurrence of a condition subsequent.19
(9) The term also includes the charge made for providing tangible 20
personal property along with an operator for a fixed or indeterminate 21
period of time. A consideration of this is that the operator is 22
necessary for the tangible personal property to perform as designed. 23
For the purpose of this subsection (9), an operator must do more than 24
maintain, inspect, or set up the tangible personal property.25
(10) The term does not include the sale of or charge made for 26
labor and services rendered in respect to the building, repairing, or 27
improving of any street, place, road, highway, easement, right-of-28
way, mass public transportation terminal or parking facility, bridge, 29
tunnel, or trestle which is owned by a municipal corporation or 30
political subdivision of the state or by the United States and which 31
is used or to be used primarily for foot or vehicular traffic 32
including mass transportation vehicles of any kind.33
(11) The term also does not include sales of chemical sprays or 34
washes to persons for the purpose of postharvest treatment of fruit 35
for the prevention of scald, fungus, mold, or decay, nor does it 36
include sales of feed, seed, seedlings, fertilizer, agents for 37
enhanced pollination including insects such as bees, and spray 38
materials to: (a) Persons who participate in the federal conservation 39
reserve program, the environmental quality incentives program, the 40
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wetlands reserve program, and the wildlife habitat incentives 1
program, or their successors administered by the United States 2
department of agriculture; (b) farmers for the purpose of producing 3
for sale any agricultural product; (c) farmers for the purpose of 4
providing bee pollination services; and (d) farmers acting under 5
cooperative habitat development or access contracts with an 6
organization exempt from federal income tax under 26 U.S.C. Sec. 7
501(c)(3) of the federal internal revenue code or the Washington 8
state department of fish and wildlife to produce or improve wildlife 9
habitat on land that the farmer owns or leases. 10
(12) The term does not include the sale of or charge made for 11
labor and services rendered in respect to the constructing, 12
repairing, decorating, or improving of new or existing buildings or 13
other structures under, upon, or above real property of or for the 14
United States, any instrumentality thereof, or a county or city 15
housing authority created pursuant to chapter 35.82 RCW, including 16
the installing, or attaching of any article of tangible personal 17
property therein or thereto, whether or not such personal property 18
becomes a part of the realty by virtue of installation. Nor does the 19
term include the sale of services or charges made for the clearing of 20
land and the moving of earth of or for the United States, any 21
instrumentality thereof, or a county or city housing authority. Nor 22
does the term include the sale of services or charges made for 23
cleaning up for the United States, or its instrumentalities, 24
radioactive waste and other by-products of weapons production and 25
nuclear research and development. 26
(13) The term does not include the sale of or charge made for 27
labor, services, or tangible personal property pursuant to agreements 28
providing maintenance services for bus, rail, or rail fixed guideway 29
equipment when a regional transit authority is the recipient of the 30
labor, services, or tangible personal property, and a transit agency, 31
as defined in RCW 81.104.015, performs the labor or services.32
(14) The term does not include the sale for resale of any service 33
described in this section if the sale would otherwise constitute a 34
"sale at retail" and "retail sale" under this section.35
(15)(a) The term "sale at retail" or "retail sale" includes 36
amounts charged, however labeled, to consumers to engage in any of 37
the activities listed in this subsection (15)(a), including the 38
furnishing of any associated equipment or, except as otherwise 39
provided in this subsection, providing instruction in such 40
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activities, where such charges are not otherwise defined as a "sale 1
at retail" or "retail sale" in this section: 2
(i)(A) Golf, including any variant in which either golf balls or 3
golf clubs are used, such as miniature golf, hitting golf balls at a 4
driving range, and golf simulators, and including fees charged by a 5
golf course to a player for using his or her own cart. However, 6
charges for golf instruction are not a retail sale, provided that if 7
the instruction involves the use of a golfing facility that would 8
otherwise require the payment of a fee, such as green fees or driving 9
range fees, such fees, including the applicable retail sales tax, 10
must be separately identified and charged by the golfing facility 11
operator to the instructor or the person receiving the instruction.12
(B) Notwithstanding (a)(i)(A) of this subsection (15) and except 13
as otherwise provided in this subsection (15)(a)(i)(B), the term 14
"sale at retail" or "retail sale" does not include amounts charged to 15
participate in, or conduct, a golf tournament or other competitive 16
event. However, amounts paid by event participants to the golf 17
facility operator are retail sales under this subsection (15)(a)(i). 18
Likewise, amounts paid by the event organizer to the golf facility 19
are retail sales under this subsection (15)(a)(i), if such amounts 20
vary based on the number of event participants; 21
(ii) Ballooning, hang gliding, indoor or outdoor sky diving, 22
paragliding, parasailing, and similar activities; 23
(iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, 24
ping pong, and similar games; 25
(iv) Access to amusement park, theme park, and water park 26
facilities, including but not limited to charges for admission and 27
locker or cabana rentals. Discrete charges for rides or other 28
attractions or entertainment that are in addition to the charge for 29
admission are not a retail sale under this subsection (15)(a)(iv). 30
For the purposes of this subsection, an amusement park or theme park 31
is a location that provides permanently affixed amusement rides, 32
games, and other entertainment, but does not include parks or zoos 33
for which the primary purpose is the exhibition of wildlife, or 34
fairs, carnivals, and festivals as defined in (b)(i) of this 35
subsection; 36
(v) Batting cage activities; 37
(vi) Bowling, but not including competitive events, except that 38
amounts paid by the event participants to the bowling alley operator 39
are retail sales under this subsection (15)(a)(vi). Likewise, amounts 40
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paid by the event organizer to the operator of the bowling alley are 1
retail sales under this subsection (15)(a)(vi), if such amounts vary 2
based on the number of event participants; 3
(vii) Climbing on artificial climbing structures, whether indoors 4
or outdoors; 5
(viii) Day trips for sightseeing purposes; 6
(ix) Bungee jumping, zip lining, and riding inside a ball, 7
whether inflatable or otherwise; 8
(x) Horseback riding offered to the public, where the seller 9
furnishes the horse to the buyer and providing instruction is not the 10
primary focus of the activity, including guided rides, but not 11
including therapeutic horseback riding provided by an instructor 12
certified by a nonprofit organization that offers national or 13
international certification for therapeutic riding instructors;14
(xi) Fishing, including providing access to private fishing areas 15
and charter or guided fishing, except that fishing contests and 16
license fees imposed by a government entity are not a retail sale 17
under this subsection; 18
(xii) Guided hunting and hunting at game farms and shooting 19
preserves, except that hunting contests and license fees imposed by a 20
government entity are not a retail sale under this subsection;21
(xiii) Swimming, but only in respect to (A) recreational or 22
fitness swimming that is open to the public, such as open swim, lap 23
swimming, and special events like kids night out and pool parties 24
during open swim time, and (B) pool parties for private events, such 25
as birthdays, family gatherings, and employee outings. Fees for 26
swimming lessons, to participate in swim meets and other 27
competitions, or to join a swim team, club, or aquatic facility are 28
not retail sales under this subsection (15)(a)(xiii);29
(xiv) Go-karting, bumper cars, and other motorized activities 30
where the seller provides the vehicle and the premises where the 31
buyer will operate the vehicle; 32
(xv) Indoor or outdoor playground activities, such as inflatable 33
bounce structures and other inflatables; mazes; trampolines; slides; 34
ball pits; games of tag, including laser tag and soft-dart tag; and 35
human gyroscope rides, regardless of whether such activities occur at 36
the seller's place of business, but not including playground 37
activities provided for children by a licensed child day care center 38
or licensed family day care provider as those terms are defined in 39
RCW 43.216.010; 40
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(xvi) Shooting sports and activities, such as target shooting, 1
skeet, trap, sporting clays, "5" stand, and archery, but only in 2
respect to discrete charges to members of the public to engage in 3
these activities, but not including fees to enter a competitive 4
event, instruction that is entirely or predominately classroom based, 5
or to join or renew a membership at a club, range, or other facility;6
(xvii) Paintball and airsoft activities; 7
(xviii) Skating, including ice skating, roller skating, and 8
inline skating, but only in respect to discrete charges to members of 9
the public to engage in skating activities, but not including skating 10
lessons, competitive events, team activities, or fees to join or 11
renew a membership at a skating facility, club, or other 12
organization; 13
(xix) Nonmotorized snow sports and activities, such as downhill 14
and cross-country skiing, snowboarding, ski jumping, sledding, snow 15
tubing, snowshoeing, and similar snow sports and activities, whether 16
engaged in outdoors or in an indoor facility with or without snow, 17
but only in respect to discrete charges to the public for the use of 18
land or facilities to engage in nonmotorized snow sports and 19
activities, such as fees, however labeled, for the use of ski lifts 20
and tows and daily or season passes for access to trails or other 21
areas where nonmotorized snow sports and activities are conducted. 22
However, fees for the following are not retail sales under this 23
subsection (15)(a)(xix): (A) Instructional lessons; (B) permits 24
issued by a governmental entity to park a vehicle on or access public 25
lands; and (C) permits or leases granted by an owner of private 26
timberland for recreational access to areas used primarily for 27
growing and harvesting timber; and 28
(xx) Scuba diving; snorkeling; river rafting; surfing; 29
kiteboarding; flyboarding; water slides; inflatables, such as water 30
pillows, water trampolines, and water rollers; and similar water 31
sports and activities. 32
(b) Notwithstanding anything to the contrary in this subsection 33
(15), the term "sale at retail" or "retail sale" does not include 34
charges: 35
(i) Made for admission to, and rides or attractions at, fairs, 36
carnivals, and festivals. For the purposes of this subsection, fairs, 37
carnivals, and festivals are events that do not exceed 21 days and a 38
majority of the amusement rides, if any, are not affixed to real 39
property; 40
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(ii) Made by an educational institution to its students and staff 1
for activities defined as retail sales by (a)(i) through (xx) of this 2
subsection. However, charges made by an educational institution to 3
its alumni or other members of the general public for these 4
activities are a retail sale under this subsection (15). For purposes 5
of this subsection (15)(b)(ii), "educational institution" has the 6
same meaning as in RCW 82.04.170; 7
(iii) Made by a vocational school for commercial diver training 8
that is licensed by the workforce training and education coordinating 9
board under chapter 28C.10 RCW; or 10
(iv) Made for day camps offered by a nonprofit organization or 11
state or local governmental entity that provide youth not older than 12
age 18, or that are focused on providing individuals with 13
disabilities or mental illness, the opportunity to participate in a 14
variety of supervised activities. 15
(16)(a) The term "sale at retail" or "retail sale" includes the 16
purchase or acquisition of tangible personal property and specified 17
services by a person who receives either a qualifying grant exempt 18
from tax under RCW 82.04.767 or 82.16.320 or a grant deductible under 19
RCW 82.04.4339, except for transactions excluded from the definition 20
of "sale at retail" or "retail sale" by any other provision of this 21
section. Nothing in this subsection (16) may be construed to limit 22
the application of any other provision of this section to purchases 23
by a recipient of either a qualifying grant exempt from tax under RCW 24
82.04.767 or a grant deductible under RCW 82.04.4339, or by any other 25
person. 26
(b) For purposes of this subsection (16), "specified services" 27
means: 28
(i) The constructing, repairing, decorating, or improving of new 29
or existing buildings or other structures under, upon, or above real 30
property, including the installing or attaching of any article of 31
tangible personal property therein or thereto, whether or not such 32
personal property becomes a part of the realty by virtue of 33
installation; 34
(ii) The clearing of land or the moving of earth, whether or not 35
associated with activities described in (b)(i) of this subsection 36
(16); 37
(iii) The razing or moving of existing buildings or structures; 38
and 39
(iv) Landscape maintenance and horticultural services.40
p. 14 SB 5111
NEW SECTION. Sec. 3. A new section is added to chapter 82.04 1
RCW to read as follows: 2
(1) This chapter does not apply to amounts remitted to a county 3
filing office for the purpose of recording documents.4
(2) A person is eligible for the exemption under this section if 5
the person is primarily engaged in escrow agent services as described 6
in RCW 18.44.011 (7) and (8) and 18.44.021(1). 7
(3) The remittance amounts must be separately identified on a 8
settlement statement, HUD-1, or closing disclosure.9
NEW SECTION. Sec. 4. RCW 82.32.805 and 82.32.808 do not apply 10
to this act.11
NEW SECTION. Sec. 5. This act takes effect January 1, 2026.12
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p. 15 SB 5111