2016 Hill Day Series: Why pay twice? REALTORS® propose solution for REET double taxation
Three generations of REALTORS® met with Representative Judy Clibborn (D-41) to discuss the issue some are facing with being double taxed through the real estate excise tax (REET).
— SKCRealtors (@SKCRealtors) January 21, 2016
Van Anderson, the key contact for Rep. Clibborn and a REALTOR® for 52 years, was joined by several members and board members of the Young Professionals Network (YPN) in meeting with the representative. “The YPN group is one of the main reasons I am here today. I want the next generation of REALTORS to be able to sell and for their clients to have enough to buy,” stated Anderson. Rep. Clibborn’s daughter is a REALTOR® in Seattle and understands how difficult it is for sellers and buyers alike in the current climate.
The REALTORS® visiting with Rep. Clibborn discussed REET. For decades, the transfer of real estate upon a person’s death has been exempt from REET. Some local governments and the Department of Revenue have concluded that for some properties, the REET applies twice; once upon the death of a homeowner and the second time when the heirs sell the property. Washington already has one of the highest transfer taxes in the nation, so paying once is enough. Rep. Clibborn listened carefully as Seattle King County REALTORS® President, Patti Hill, shared a story about one of her clients whose state was subject to the effects of the REET double taxation. Rep. Clibborn agreed this is a big issue for sellers and understood why the REALTORS® support a clarification of the law to eliminate double taxation.