Director's Rule 5-531

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Sales of real property, standing timber, minerals, natural resources

(1) Amounts derived from the sale of real estate are not subject to tax under the business license tax. However, no exemption is allowed where a mere license to use real estate is granted (see Seattle Rule 5-530). Further, no exemption is allowed for commissions received in connection with sales of real estate or for interest received by persons engaged in the business of selling real estate on time or installments contracts; see SMC 5.45.090(T) and Seattle Rule 5-530 and 5-532.

(2) Sales of standing timber, minerals in place, and other natural resources in place are sales of real estate, and are not subject to tax under the business license tax.

(3) Timber, minerals, and other natural resources, after being severed from the real estate, lose their identity as real property, and sales thereof after severance are subject to the provisions of the business license tax.

(4) Any person who cuts timber, or who mines or quarries minerals, or who takes other natural resources from their own land is subject to tax as an extractor under the business license tax. (See Seattle Rule 5-100).

DIRECTOR'S CERTIFICATION

I, Glen M. Lee, Finance Director of the City of Seattle, do hereby certify under penalty of perjury of law, that the within and foregoing is a true and correct copy as adopted by the City of Seattle, Department of Finance and Administrative Services.

Effective date: July 14, 2016