§12.5 - Determination of the Selling Price

• Jurisdiction: Washington

§12.5 DETERMINATION OF THE SELLING PRICE

The real estate excise tax is calculated on the amount of the "selling price." RCW 82.45.060(1). For transfers of real property other than beneficial interests, the selling price is the true and fair value of the property conveyed. There is a rebuttable presumption that the true and fair value of the property is equal to the total consideration paid or contracted to be paid to the transferor or to another for the transferor's benefit. RCW 82.45.030(1); WAC 458-61A-102(17); Det. No. 88-251, 6 Wn. Tax Dec. 119 (1988). If the price paid does not accurately reflect the true and fair value, a fair market appraisal of the property or an allocation of assets by the seller and buyer under I.R.C. § 1060 may be used to determine the selling price. WAC 458-61A-102(17)(a). If neither of these methods can be used to reasonably determine the selling price, the market value assessment for the property maintained in the county property tax rolls at the time of sale will be used as the selling price. WAC 458-61A-102(17)(b).

If there is a sale of a partial interest in the real property, the selling price will be determined by adding a proportionate share of the unpaid debt on the property plus other consideration given in the transaction. WAC 458-61A-102(17)(c). In the case of a lease with option to purchase, the selling price is the true and fair value of the property conveyed at the time the option is exercised. WAC 458-61A-102(17)(d).

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