Real estate sales

From the 2024 DOR Tax Exemption Study

82.04.390 - Real estate sales Description Proceeds from selling real estate are exempt from B&O tax. However, commissions, fees, interest, and similar financial charges from selling real estate are subject to B&O taxes. Purpose Since the inception of B&O tax, sales of real estate have been exempt. Although the purpose is unclear, it could be because either: - The B&O tax was intended to tax only sales of tangible personal property and certain services. - Exempting such sales would benefit the real estate industry, as such sales would be subject to real estate excise tax but not B&O tax (note that sales of tangible personal property are subject to both sales tax and retailing B&O tax). Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4,548.800 $5,290.700 $5,787.500 $6,421.500 Local Taxes $1,907.400 $2,218.500 $2,426.800 $2,692.600 Repeal of Taxing real estate sales would directly challenge Washington Supreme Court exemption precedent (Schumacher) and likely lead to another court challenge. Based on subsequent decisions by the court, the court may overturn Schumacher, leading to an increase in revenue, but it is just as likely for the court to uphold Sch