Loading chat...

WA HB1115

Bill

Official Source

Status

Introduced

1/13/2025

Primary Sponsor

Steve Tharinger

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Exempts document recording surcharges collected by title and escrow businesses from sales/use tax and business and occupation (B&O) tax when those amounts are remitted to county filing offices for recording documents
  • Responds to Department of Revenue assessments against title and escrow companies for back taxes on recording surcharges, which the legislature finds created severe hardship for small independent businesses
  • Cites a February 27, 2024 Washington Court of Appeals ruling (BIAW v. State of Washington) that concluded the document recording surcharge is an excise tax, with only $1.83 (1%) going to county auditor collection activities while the rest funds housing programs
  • Requires recording fee amounts to be separately identified on settlement statements, HUD-1 forms, or closing disclosures to qualify for the exemption
  • Takes effect January 1, 2026

Legislative Description

Concerning the excise tax treatment of amounts received by title and escrow businesses from clients for remittance to a county filing office for the purpose of recording documents.

Last Action

By resolution, reintroduced and retained in present status.

1/12/2026

Committee Referrals

Finance1/13/2025

Full Bill Text

No bill text available