Washington Administrative Code
Title 458 - Revenue, Department of
Chapter 458-61A - Real estate excise tax
GENERAL INFORMATION AND TAXABILITY OF TRANSFERS
Section 458-61A-107 - Option to purchase
Current through Register Vol. 24-06, March 15, 2024
(1) Introduction. The real estate excise tax applies to a conveyance of real property upon the exercise of an option to purchase.
(2) Taxability of sales of options. The real estate excise tax does not apply to the grant or sale of an option and the real estate excise tax affidavit is not required for that transaction. However, the sale of an option is subject to business and occupation tax under the service and other category and should be reported on the combined excise tax return. RCW 82.04.290.
(3) For the sole purpose of determining whether a transfer or acquisition of a controlling interest pursuant to the exercise of an option occurred within the period provided in RCW 82.45.010 and WAC 458-61A-101, the date on which the option agreement was executed is deemed to be the date of the transfer or acquisition. For any other purpose; however, the date on which the option is exercised is the date of the transfer or acquisition. RCW 82.45.010(2)(b). See WAC 458-61A-101.
(4) Examples.
Statutory Authority: RCW 82.45.150, 82.32.300, and 82.01.060. 11-16-106, § 458-61A-107, filed 8/3/11, effective 9/3/11. Statutory Authority: RCW 82.32.300, 82.01.060(2), and 82.45.150. 05-23-093, § 458-61A-107, filed 11/16/05, effective 12/17/05.