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</v:background></xml><![endif]--><div class=WordSection1><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>Pursuant to our meeting yesterday, please review and comment for possible distribution to our members. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>DRAFT EMAIL:<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>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. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>A brief summary of the issue:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='font-family:"Times New Roman",serif'>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.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='font-family:"Times New Roman",serif'>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.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:1.0in'><span style='font-family:"Times New Roman",serif'>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.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>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.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'>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 (<a href="mailto:maureen@olypentitle.com">maureen@olypentitle.com</a>), JP Kissling (<a href="mailto:jpkissling@fitico.com">jpkissling@fitico.com</a>) or Michelle Taylor (<a href="mailto:mjtaylor@firstam.com">mjtaylor@firstam.com</a>) 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.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext;mso-ligatures:none'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext'>George<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>George Peters, WTP<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>Executive Director<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>Washington Land Title Association<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext'><a href="https://washingtonlandtitle.com"><span style='color:#0563C1'>https://washingtonlandtitle.com</span></a> </span><span style='font-family:"Times New Roman",serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>Mail: PO Box 328, Lynnwood, WA 98046<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>Delivery: 6817 208<sup>th</sup> St SW, #328, Lynnwood, WA 98036<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>206-437-5869 (Mobile)<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:#1F497D'>206-260-4731 (Fax)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'><a href="mailto:execdirector@wltaonline.org"><span style='font-size:12.0pt;font-family:"Times New Roman",serif;color:blue'>execdirector@washingtonlandtitle.com</span></a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'><img border=0 width=169 height=97 style='width:1.7583in;height:1.0083in' id="Picture_x0020_553288551" src="cid:image002.jpg@01DB6108.616C6D10" alt="WLTA Logo w-Ring Blue 1a"><img border=0 width=95 height=95 style='width:.9916in;height:.9916in' id="Picture_x0020_220839573" src="cid:image003.jpg@01DB6108.616C6D10"></span><span style='font-family:"Times New Roman",serif;color:windowtext'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif;color:windowtext'>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.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>