- 10 -
whether Washington State’s real estate excise tax constitutes a
real property tax for purposes of section 164(a)(1).
There is nothing in Washington Revised Code Ann. ch. 82.45,
Excise Tax on Real Estate Sales (West 2000), nor in its
legislative history indicating that Washington State’s real
estate excise tax is in lieu of the State’s real property tax.6
Indeed, Washington State’s real estate excise tax is another
source of the State’s tax revenues, but it is separate and
distinct from Washington State’s real property tax. In fact,
petitioners paid annual real estate property taxes based on their
ownership interest in property. In addition, when petitioners
sold their property, they paid a separate real estate excise tax
based on the sale transaction. Thus, petitioners paid at least
two distinguishable taxes on their property: an annual tax based
on their interest in the property, and a one-time tax based on
the sale of their property. State law makes this distinction and
so shall we for purposes of section 164(a)(1).
Accordingly, we sustain respondent’s determination on this
issue.
6 We note that Washington State’s real estate excise tax is
found in Wash. Rev. Code Ann. tit. 82, Excise Taxes (West 2004),
whereas the State’s real property tax is found in Wash. Rev. Code
tit. 84, Property Taxes.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011