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Bill

HB 1115

Concerning the excise tax treatment of amounts received by title and escrow businesses from clients for remittance to a county filing office for the purpose of recording documents.

2025-2026 Regular Session Introduced by Chris Corry and 2 co-sponsors

HB 1115 modifies excise tax treatment for title and escrow firms' pass-through payments to county recording offices, potentially reducing their tax burden on client-held funds.

Public hearing in the House Committee on Finance at 8:00 AM.
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Bill Summary · HB 1115

Legislative bill overview

HB 1115 addresses the excise tax treatment of fees that title and escrow businesses collect from clients and pass through to county recording offices. The bill seeks to clarify or modify how these pass-through amounts are taxed under Washington's excise tax system, potentially exempting or adjusting the tax treatment of funds that businesses merely hold temporarily before remitting to government offices.

Why is this important

Title and escrow companies are essential intermediaries in real estate transactions, and how they're taxed on pass-through fees affects their operating costs and potentially consumer closing costs. Clarifying this tax treatment could reduce compliance burden and administrative costs for these businesses, though it may also affect state revenue depending on the specific tax treatment change proposed.

Potential points of contention

  • Revenue impact: Changes to excise tax treatment could reduce state tax revenue; fiscal impact needs analysis
  • Business equity: Questions about whether title/escrow companies should be taxed differently than other service providers handling client funds
  • Implementation complexity: Defining which amounts qualify as "pass-through" versus earned revenue may create ongoing compliance and audit challenges

Compiled from official sources — confirm details with the bill’s official record.

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