[Legislativecommittee1] DRAFT email to Members - Taxation of Recording Fees

[George Peters]

Pursuant to our meeting yesterday, please review and comment for possible
distribution to our members. 

 

DRAFT EMAIL:

 

The WLTA is supporting legislation to clarify that recording fees advanced
for transactions closed in escrow are NOT taxable income to a title or
escrow company. Copy of the Senate version of the bill is attached. 

 

A brief summary of the issue:

 

The DOR in some audit situations have asserted that sales and B&O tax must
be paid on the recording fees collected by title companies, and that those
funds be included in the gross revenues and thus also subject to the B&O
tax.

 

The WLTA believes that these fees are being provided by the
buyer/seller/lender to record their documents (a pass through), putting the
money into escrow to be disbursed on their behalf to the recorder's office
for specific documents at closing. They are NOT TITLE COMPANY INCOME FOR
SERVICES PROVIDED.

 

The legislative intent is included in Sec. 1 of the attached bill for
further explanation. See pages 5, 6 and 15 for the actual language changes
to the statute.

 

This approach by DOR is not supported by RCW, WAC, rule or custom. Some WLTA
members have been significantly impacted by this approach (including fines)
by DOR when audited. Others have not yet been audited but CAN EXPECT THE
SAME NEGATIVE RESULTS.

 

WE NEED members to volunteer to testify during hearings (which can be done
remotely) on either or both of these two bills. Please reply to this email
or contact Maureen Pfaff (maureen at olypentitle.com
<mailto:maureen at olypentitle.com> ), JP Kissling (jpkissling at fitico.com
<mailto:jpkissling at fitico.com> ) or Michelle Taylor (mjtaylor at firstam.com
<mailto:mjtaylor at firstam.com> ) directly AS SOON AS POSSIBLE to discuss your
testimony - we need to organize how and what will be offered since testimony
opportunities may be limited in the hearing process.

 

George

 

George Peters, WTP

Executive Director

Washington Land Title Association

 <https://washingtonlandtitle.com> https://washingtonlandtitle.com 

Mail: PO Box 328, Lynnwood, WA 98046

Delivery: 6817 208th St SW, #328, Lynnwood, WA 98036

206-437-5869 (Mobile)

206-260-4731 (Fax)

 <mailto:execdirector at wltaonline.org> execdirector at washingtonlandtitle.com

 



This is a confidential communication intended solely for the named
recipient. If you are not the intended recipient, please destroy it and call
George Peters at 206-437-5869 immediately. Thank you.

 

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