Senate Bill 5998 will take effect on January 1, 2020 creating a graduated real estate excise tax scale.
Currently the State of Washington's excise tax rate is 1.28%. On and after January 1, 2020 the State's excise tax will be on a graduated scale as follows:
1.1% for portion of sales prices up to and including $500,000.00
1.28% for portion of sales prices over $500,000.00 up to and including $1,500,000.00
2.75% for portion of sales prices over $1,500,000.00 up to and including $3,000,000.00
3% for portion of sales prices greater than $3,000,000.00
The real estate excise tax for agricultural and timberlands will remain at 1.28%.
Please note that the above rates are for the State's percentage. Locally imposed taxes will raise these percentages. The current local rates are unchanged by the new law and will be added to the State's percentages for the actual Excise Tax amount.
The other significant change occasioned by SB 5998 is the time frame for determining whether the transfer of a "controlling interest" occurred. The legislation 1) extends the time period for determining whether a controlling interest has been transferred from 12 months to 36 months; and 2) requires that the Secretary of State adopt rules requiring annual reporting for the transfer of at least one-third of a controlling interest in an entity.
Lastly, below is a link to the Washington State Department of Revenue's website that includes forms and a REET calculator.