Governor signs bill clarifying Realtors’ B&O tax

Governor Chris Gregoire has signed into law SB 5083, clarifying the Business and Occupation Tax (B&O) on commissions paid to real estate brokers.

The Washington Department of Revenue (WDOR) issued a new interpretation of a real estate statute that called for double B&O taxation any time a commission is paid to more than two real estate offices.

The Washington Association of Realtors opposed WDOR’s interpretation and made the issue its primary legislative focus, stating the B&O tax on commissions paid to a referring or co-listing office had been paid by the listing office.

According to WAR, the new law will save brokers $5 million over the next five years.