Washington SB5111 exempts document recording surcharges from sales and use tax.

Washington SB5111 amends the state's tax code to exempt document recording surcharges from sales and use tax. The bill clarifies that these surcharges, which are intended to alleviate the housing crisis, are considered excise taxes rather than fees. This change aims to alleviate the financial burden on title and escrow businesses, which have been assessed large sums of back taxes for failing to collect and pay these taxes on recording surcharges. The bill takes effect on January 1, 2026.

Washington SB5111 exempts document recording surcharges from sales and use tax.

Washington SB5111 amends the state's tax code to exempt document recording surcharges from sales and use tax. The bill clarifies that these surcharges, which are intended to alleviate the housing crisis, are considered excise taxes rather than fees. This change aims to alleviate the financial burden on title and escrow businesses, which have been assessed large sums of back taxes for failing to collect and pay these taxes on recording surcharges. The bill takes effect on January 1, 2026.