Loading chat...
WA SB5111
Bill
Status
1/13/2025
Primary Sponsor
Mike Chapman
Click for details
AI Summary
-
Exempts document recording surcharges from sales/use tax and business & occupation tax when title and escrow businesses collect these amounts from clients and remit them to county filing offices for recording documents
-
Requires the recording fee amounts to be separately identified on settlement statements, HUD-1 forms, or closing disclosures to qualify for the exemption
-
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 the February 27, 2024 Washington Court of Appeals ruling in BIAW v. State of Washington that determined document recording surcharges are excise taxes rather than fees, with only $1.83 (1%) of the total surcharge used for county collection activities
-
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