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Form Rev 86 0059e - Leasehold Excise Tax Return Federal Permit Or Lease - Washington State Department Of Revenue - 2012 Page 2

General Information on Leasehold Excise Tax

The following is a brief explanation discussing the more important provisions of (RCW 82.29A). For the exact

statutory language and precise definition of terms, refer to the law itself, which can be obtained by visiting our

web site at dor.wa.gov.

1. Who must file leasehold excise tax returns with the Department of Revenue?

A: All non-exempt private users of federally owned property or federal trust lands.

2. Who are non-exempt private users?

A: Anyone who would be subject to payment of property tax on the leasehold property if it were owned fee

simple unless expressly exempted in the Leasehold Excise Tax Law.

3. What is the effective date of the 12% leasehold excise tax? (Revised to 12.84% July, 1982.)

A: January 1, 1976. The tax will apply to rent on leases in existence on or after January 1, 1976.

4. What leasehold interests in publicly owned property are exempt or excluded from the leasehold excise tax?

• Interests held by persons who would be exempt from property tax under Chapter 84.36 RCW if they owned

property such as churches, public cemeteries, schools, and;

• Road or utility easements or rights of access, occupancy, or use granted solely to permit the removal of

materials or products purchased from a public owner of lessee of a public owner.

• Interest in operating properties of public utilities subject to property tax under Chapter 84.12 RCW.

• Residential property used by an employee of the owner, where such residence is a condition of

employment.

• Interests of tribally enrolled Indians of trust land owned or held by an Indian or an Indian tribe.

• All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held

in trust by the United States or is subject to a restriction against alienation imposed by the United States

where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental.

• Interests for which taxable rent is less than $250 per year.

• Interest giving less than 30 continuous days use or possession. The terms of the lease must state that the

property is only accessible to you for less than 30 days.

86 0059e

(10/26/12)

Form Rev 86 0059e - Leasehold Excise Tax Return Federal Permit Or Lease - Washington State Department Of Revenue - 2012 Page 2