Exemption
Governmental transfers
Real Estate Excise Tax exemption · RCW 82.45.010(3)(n) · enacted 1951
Details
- Citation
- RCW 82.45.010(3)(n)
- Study reference
- E1516-1
- Tax type
- Real Estate Excise Tax
- Preference type
- Exemption
- Category
- Other
- Year enacted
- 1951
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 7 · FY 2026: 8.7 · FY 2027: 10.7
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 34.3 · FY 2026: 41.6 · FY 2027: 49.7
- Taxpayer savings — local ($M)
- FY 2024: 6.8 · FY 2025: 7.7 · FY 2026: 8.7 · FY 2027: 10.7
- Taxpayer savings — state ($M)
- FY 2024: 32.7 · FY 2025: 38 · FY 2026: 41.6 · FY 2027: 49.7
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.45.010(3)(n) - Governmental transfers Description Real property sold by the federal, state, or local government is not subject to state or local real estate excise tax. Purpose Governments are exempt from most taxes because this just transfers funds between jurisdictions. 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 $32.700 $38.000 $41.600 $49.700 Local Taxes $6.800 $7.700 $8.700 $10.700 Repeal of Repealing this exemption would increase revenues; however, the federal exemption government is constitutionally exempt from almost all state taxes. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $34.300 $41.600 $49.700 Local Taxes $0.000 $7.000 $8.700 $10.700 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
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