Trust account amounts received by mortgage brokers

From the 2024 DOR Tax Exemption Study

82.04.392 - Trust account amounts received by mortgage brokers Description Amounts received by mortgage brokers from borrowers for payment of third-party services are trust funds held in trust accounts until disbursement (RCW 19.146.050). The amounts received by mortgage brokers from trust accounts for payment of third-party services are exempt from B&O tax. Purpose To recognize that trust fund payments to third parties are not income to the mortgage broker. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.670 $0.760 $0.850 $0.970 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. However, a mortgage broker exemption may be able to deduct third-party services as an advance or reimbursements (WAC 458-20-111). Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.700 $0.850 $0.970 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - The growth in mortgages mirrors the housing market growth rate reflected in the S&P Global Market Intelligence March 2