WA Various Affidavit Processing Fees

According to the DOR REET affidavit, a minimum of $5.00 shall be collected in the form of tax and processing fee. A processing fee is due on all transactions where no tax is due and on all taxable transactions where the tax due is less than $5.00. (RCW 82.45.180) If the excise tax due is less than $5.00, then the affidavit processing fee will be variable to maintain the minimum requirement; calculated as $5.00 minus the amount of the total excise.

New REET Configuration has been implemented with two new System Configuration settings in the REET Configuration section. 

• Affidavit Processing Fee Type identifies the REET affidavit fee type from existing REET fee types. The default is set by looking for any existing REET affidavit fee type.
• Minimum Amount Due is the minimum total amount due for a REET, when it’s configured.

Note The minimum amount is the TOTAL minimum due and includes the State Technology fee, currently $5.

Existing REET Configuration:

In the REET > REET Type Code codefile, the user can choose which REET fee types are associated with each REET Type.  Any REET of that type will have those fees added on.

From CodeFile Maintenance > Collections > Fee Type, the REET AfProc fee details can be seen.

Though it is indicated as $5, since it is set as the processing fee in the System Configuration, PACS will calculate the variable fee due per REET record if added to each REET Rate Type.

The minimum amount due functionality works when these conditions are met:

• REET affidavit fees are configured where
  • Affidavit Processing Fee Type is set to a valid REET fee type
  • Minimum Amount Due > 0
• The REET Type has an associated Affidavit Fee

If the total amount due for the REET, excise plus other fees, is less than the Minimum Amount Due, the Affidavit Fee is calculated to bring the total up the minimum.  If the total amount due is equal to or greater than the minimum, the Affidavit Fee is set to a zero value.

 Otherwise, all REET fees have their default value specified in the Fee Type code file.

Typically, in the REET configurations that are set up now, only the Exempt / non-tax REET types are set up with an affidavit fee – these generally calculate as zero excise and just the fees, with the Affidavit fee making up the difference between the other fees and the minimum.

If Taxable REET types don’t have the Affidavit Fee, the minimum value doesn’t apply to them.  The Affidavit Fees will need to be added to taxable types in order for this new functionality to apply.

REET Taxable where variable processing fee is calculated by PACS:

REET Taxable where variable processing fee DOES NOT need to be calculated by PACS:

Same record, different sale price entered

Purpose

Sometimes the accounting behind a fee becomes invalid after the fee is retired – but it continues to be available to cashiers to create the fee. An admin user needs to be able to indicate the fee code should no longer be available to select in the UI.

 Once inactive, a fee code will no longer display in the drop down or UI when selecting a fee code. Any fee already created/assigned would be retained and untouched by the inactive indication. This is simply a data entry implementation to prevent a user from selecting a ‘retired’ fee.

Procedure

• ADMIN
  • Codefile Maintenance: Collections > Fee Type – Added Inactive checkbox
  • System Configuration: REET Configuration > Affidavit Processing Fee Type – inactive fees will not be available to select
• PACS
  • Modify places in the UI where the user can select a Fee Type
  • When creating a new fee, PACS should not offer inactive fee types
  • When viewing an existing fee, the fee’s current type should be displayed even if the fee type has been made inactive.
  • There are a few cases where the details of an existing fee can be edited –
    • PACS is actually creating a new associated fee behind the scenes.
    • In this case, any existing inactive fee type will still be selectable, so the current fee type can be displayed in the combo box.
  • When filtering by fee type for a search or report, show all fee types, even if inactive. No changes are needed for this case.
• Changes made to these PACS features:
  • Create Fee dialog (Property View > Property Fee Amounts > New, or File > New > Fee)
  • View an existing Fee (Property View > Property Fee Amounts > Details)
  • Lien Details (Property View > Deeds & Sales > Property Liens)
  • Special Assessment details – Additional Fee
  • Escrow Worksheet (advanced) – Additional Fees
  • Create Fee Wizard (Property search results > Add Fee…)
  • Payout Agreement Wizard (page 5, Collection Fee, Fee Type)