Bill > HB2009

This bill clarifies the calculation of the Real Estate Excise Tax (REET) for transfers involving a controlling interest in an entity that owns real property. Specifically, the bill modifies how the "selling price" is determined when a controlling interest in a property-owning entity is transferred. Under the new language, the selling price will be calculated by multiplying the true and fair value of the real property located in Washington state by the percentage of the controlling interest being transferred. The bill provides a rebuttable presumption that the selling price is equal to the total consideration paid in an arm's length transaction between unrelated parties. If the true and fair value of the real property cannot be reasonably determined, the bill allows for using the market value assessment from county property tax rolls as the selling price. The bill includes provisions about what constitutes "total consideration," such as including liens and mortgages, while excluding certain tax-related and relocation assistance amounts. The changes are set to take effect on August 1, 2025, providing clarity and standardization for real estate transactions involving entity ownership transfers.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2009&Year=2025&Initiative=false