A Washington real estate broker is explaining the REET tiers to a seller client whose home is listed at $1,600,000. The broker correctly states that the sale price falls into three different tax tiers. Which of the following correctly identifies the three applicable REET rates and the price ranges to which each applies?
Correct Answer
B) 1.1% on the first $525,000; 1.28% on $525,001–$1,525,000; 2.75% on $1,525,001–$1,600,000
Under RCW 82.45, Washington's 2023 graduated REET schedule has four tiers with the following exact thresholds and rates: Tier 1 — 1.1% on the portion up to $525,000; Tier 2 — 1.28% on the portion from $525,001 to $1,525,000; Tier 3 — 2.75% on the portion from $1,525,001 to $3,025,000; Tier 4 — 3.0% on the portion above $3,025,000. For a $1,600,000 sale, all three applicable tiers and rates in option B are precisely correct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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