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SB 5111

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 Mike Chapman and 4 co-sponsors

SB 5111 clarifies excise tax treatment for title and escrow business fees collected from clients for county document recording, potentially affecting state revenue and business operational costs.

Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
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Bill Summary · SB 5111

Legislative bill overview

SB 5111 addresses how Washington State's excise tax applies to fees that title and escrow businesses collect from clients specifically for recording documents with county filing offices. The bill seeks to clarify or modify the tax treatment of these pass-through amounts that businesses remit directly to counties rather than retain as revenue.

Why is this important

Title and escrow businesses handle significant transaction volumes in real estate, and tax treatment of recording fees affects their operational costs and client expenses. Clarifying excise tax applicability could either reduce compliance burdens for these businesses or generate/preserve state tax revenue, depending on the bill's specific language and current interpretation disputes.

Potential points of contention

  • Tax base definition: Whether funds collected solely for remittance to counties constitute taxable business income or are non-taxable pass-through amounts
  • Business cost impact: Clarification may either relieve tax burdens on title/escrow companies or close perceived tax loopholes, affecting their competitiveness and pricing
  • Revenue implications: The state may gain or lose excise tax revenue depending on the direction of the change, which could affect budget considerations in Ways & Means Committee

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

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