David sells his investment property in Bellevue for $800,000. Using Washington's graduated state REET schedule (1.1% up to $525,000; 1.28% from $525,001 to $1,525,000), what is the total state Real Estate Excise Tax owed on this transaction?
Correct Answer
B) $9,295
Washington's graduated state REET applies 1.1% to the first $525,000 ($5,775) and 1.28% to the next $275,000 ($3,520), totaling $9,295.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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