IRS transfers

From the 2024 DOR Tax Exemption Study

82.45.010(3)(q) - IRS transfers Description Transferring real property to form, liquidate, or reorganize a corporation or partnership is not subject to state or local real estate excise tax. This only applies to real property transfers that qualify as a nonrecognition of gain or loss transaction under the Internal Revenue Code. Purpose Transferring real property to form, liquidate, or reorganize a corporation or partnership is not a sale. 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 $32.310 $37.580 $41.120 $48.660 Local Taxes $7.210 $8.150 $9.210 $10.970 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $33.860 $41.120 $48.660 Local Taxes $0.000 $7.340 $9.210 $10.970 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 departmen