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purposes of section 164(a)(1), then it would not be deductible as
such, but rather it would reduce the amount realized on the sale
of the property. Sec. 164(a).
The Washington Revised Code Annotated section 82.45.060, Tax
imposed on sale of property–-Additional tax imposed (West 2000),
provides in part as follows:
There is imposed an excise tax upon each sale of real
property at the rate of one and twenty-eight one-
hundredths percent of the selling price. An amount
equal to seven and seven-tenths percent of the proceeds
of this tax to the state treasurer shall be deposited
in the public works assistance account * * *[5]
[Emphasis added.]
See Wash. Rev. Code Ann. ch. 82.45 (West 2000); Wash. Admin. Code
sec. 458-61-015, Real Estate Excise Tax (2004).
According to the statute, it is clear that the nature and
character of the tax at issue are those of an excise tax.
Typically, an excise tax is imposed on the consumption,
manufacture, or sale of certain commodities, privileges,
particular business transactions, and the like. See Flint v.
Stone Tracy Co., 220 U.S. 107, 151 (1911). In the instant case,
the Washington State real estate excise tax is a tax on the
transaction or particular privilege of selling real property. In
5 Petitioner claims, and respondent does not dispute, that
the real estate excise tax is for the general public welfare. We
note that the public works assistance account is established in
the State treasury, and that the money in the account is used to
make loans and to give financial guarantees to local governments
for public works projects. Wash. Rev. Code Ann. sec. 43.155.050
(West 2000).
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