Hull, 102953 WAAGO, AGO 1953 - 158

• Case Date: October 29, 1953
• Court: Washington

Honorable Ronald R. Hull AGO 1953 - 158 No. 1953 - 158 AGO 53-55-158 Washington Attorney General Opinion Washington State Office of the Attorney General October 29, 1953          TAXATION -- REAL ESTATE SALES TAX -- PROPERTY SETTLEMENTS BETWEEN HUSBAND AND WIFE.          Property settlements between husband and wife incident to adjustment of the marital relationship by divorce or separation are not "sales" within the meaning of RCW 28.45.010.          Honorable Ronald R. Hull          Prosecuting Attorney          Yakima County          Suite 102, County Court House          Yakima, Washington          Dear Sir:          We have your request that we reconsider the opinion of September 5, 1951, addressed to the prosecuting attorney of Franklin county, AGO 51-53 No. 120, [[to Roger L. Olson]], concerning the applicability of the excise tax on real estate sales to property settlements between husband and wife.          We conclude property settlements incident to the adjustment of the marital relationship by divorce or separation do not effectuate taxable transfers and accordingly AGO 51-53 No. 120 is superseded.          ANALYSIS          The taxability of any transaction involving real property interests pursuant to the authorization of chapter 28.45 RCW depends upon inclusion of the transaction within the definition of "sale" in RCW 28.45.010.  In previous opinions attention has been focused upon particular words in the section without reflection upon the meaning to be derived from the definition as a whole.          [[Orig. Op. Page 2]] Except as mentioned below amendments to the original act are not material to determination of the applicability of the statute to settlements between husband and wife.  The original act (§ 7, chapter 11, 1st Ex. Sess. 1951) provided in part:

"* * * the term 'sale' shall have its ordinary meaning and shall include any conveyance, grant, assignment, quit-claim [[quitclaim]], or transfer of the ownership of or title to real property, or any estate or interest in real property for a valuable consideration, and any contract for such conveyance, grant, assignment, quit-claim [[quitclaim]], or transfer, and any lease with an option to purchase real property or any estate or interest in real property * * *"

         It is clear that marital property settlements are not within the ordinary meaning of "sale" which is defined as...