Broker Alert: B&O Tax Letter

B&O Tax Notice sent to some real estate firms from Washington Department of Revenue is in error...

Washington REALTORS® has learned that some real estate firms may have received a notice from the Washington Department of Revenue (WDOR) stating that effective January 1, 2020, real estate firms are subject to the state’s new “Workforce Education Surcharge,” which is a 20% (.3%) increase in the state’s business and occupation (B&O) tax rate. 

This notice from WDOR is in error - the law passed by the Legislature in 2019 did not impose the new B&O tax surcharge on income from real estate brokerage activity. While some professional services will be subject to this B&O tax increase, REALTORS® worked to exclude real estate brokerage income from the surcharge. Washington REALTORS® Government Affairs staff is addressing this issue with WDOR management immediately and will provide clarification in the near future.

You are not allowed to post comments.

purple-rectangle invest2


Invest here today! Have questions? Email Melissa Purvines or call at 360.943.3100 x 123.