Concerning the excise tax treatment of amounts received by title and escrow businesses from clients for remittance to a county filing office for the purpose of recording documents.

HB 1115 clarifies that recording surcharges paid by clients to title and escrow businesses for document recording fees are not subject to Washington's sales, use, or business and occupation taxes. The bill directly affects title companies and escrow businesses, which were previously assessed back taxes for failing to collect these taxes on surcharges. It explicitly states that such surcharges - determined by a court to be an excise tax (not a fee) - cannot be taxed under state law. The law aims to prevent future tax assessments against these small businesses, resolving uncertainty created by the Department of Revenue's enforcement actions.