What is excise tax on real property?

Does real estate have excise tax?

Real estate excise tax (REET) is a tax on the sale of real property. … The seller of the property typically pays the real estate excise tax, although the buyer is liable for the tax if it is not paid.

What are examples of excise tax?

Some example excise taxes that are levied by the federal government include:

  • Alcohol: per unit excise tax.
  • Tobacco products: per unit excise tax.
  • Firearms and ammunition: per unit excise tax.
  • Gasoline and diesel: per unit excise tax.
  • Sport fishing equipment: percentage of price excise tax.

What is an excise tax in Washington state?

Washington state levies a real estate excise tax (REET) on all property sales. This state tax rate is 1.28% of a property’s full selling price.

What is the real estate excise tax in Spokane County?

The new combined state and local REET rates for Seattle, Tacoma, Spokane, Vancouver, Bellevue, and most of urban and suburban Washington will be 1.6%, 1.78%, 3.25%, and 3.5%.

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How do you calculate excise tax?

To calculate excise tax, multiply the per year amount by each thousand dollar of the MSRP. For example, the first year excise tax for a vehicle with an MSRP of $30,000 would be $720 ($24 x 30). Excise tax for the second year of the vehicle would be $525 ($17.50 x 30).

What is the excise tax rate the IRS imposes?

20, 2019, the excise tax is 1.39% of net investment income, and there is no reduced 1 percent tax rate. This tax must be reported on Form 990-PF, Return of Private Foundation. Payment of the tax is subject to estimated tax requirements.

What are the two types of excise tax?


  • Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement.
  • Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles.

What is the difference between an excise tax and a sales tax?

Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.

Is Washington B&O tax an excise tax?

​Washington’s B&O is an excise tax measured by the value of products, gross proceeds of sales, or gross income of a business with over 30 different classifications and associated tax rates ranging from 0.138 percent to 1.5 percent.

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Is excise tax included in closing costs?

Closing costs for sellers can include:

Any property taxes that are due. Government excise taxes in some cases. Prorated homeowners association dues.

What is combined excise tax return?

Combined Excise Tax

This return is used for reporting your business income, sales tax, and use tax. Monthly. Quarterly.

Which states have transfer taxes?

Real Estate Transfer Taxes in Five States

State Transfer Tax Tax per $100,000 of Property Value
California County: 0.11% $110
Florida State: 0.60% County: 0.45% $1,050
Illinois State: 0.10% County: 0.05% Chicago: 0.30% $450
New York County: 0.40%-1.40% NYC: 1.00%-2.625% $1,400-$3,025