Transfers by gift, devise, or inheritance

From the 2024 DOR Tax Exemption Study

82.45.010(3)(a) - Transfers by gift, devise, or inheritance Description Transfers of real property by gift, inheritance, or device (a will) are not subject to state or local real estate excise tax (REET). Purpose Gifted, inherited, or willed transfers of real property are not sales. REET taxes arm's- length purchases of real estate in situations where the purchase price reflects the market price. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $82.800 $96.300 $105.300 $126.800 Local Taxes $34.900 $39.500 $44.600 $54.400 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $86.700 $105.300 $126.800 Local Taxes $0.000 $35.600 $44.600 $54.400 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the REET growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The department electronically receives transaction-level REET data from 36 counties. For the three counties not reporting REET data electronically, this estimate