Transfer on death deeds

From the 2024 DOR Tax Exemption Study

82.45.010(3)(b) - Transfer on death deeds Description Transfers of real property through a transfer on death deed are not subject to state or local real estate excise tax. Purpose Provides another mechanism for tax-free transfers of real property to a beneficiary upon death by excluding transfer by transfer on death deed from the definition of sales. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.000 $1.100 $1.210 $1.450 Local Taxes $0.500 $0.500 $0.600 $0.700 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.990 $1.210 $1.450 Local Taxes $0.000 $0.500 $0.600 $0.700 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 assumes transactions similar to the urban or rural counties that