A homeowner in Redmond, Washington sells her property for $420,000. Under Washington's graduated Real Estate Excise Tax (REET) structure (RCW Chapter 82.45), the seller is primarily responsible for paying REET at 1.1% on amounts up to $525,000. How much REET does the seller owe on this transaction?
Correct Answer
C) $4,620
Step 1 — Determine applicable tier: The sale price of $420,000 falls entirely within the first tier (up to $525,000), so only the 1.1% rate applies. Step 2 — Calculate REET: $420,000 × 1.1% = $420,000 × 0.011 = $4,620. The seller owes $4,620 in REET. Under RCW Chapter 82.45, the seller is primarily responsible for this payment, which is typically collected at closing before the deed is recorded.
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