Industry urges clarification that recording fees are not subject to sales and B&O tax; DOR flags administrative concerns

Jeff Mitchell, staff to the Senate Ways & Means Committee, presented Senate Bill 5111 on Jan. 28. The bill seeks to exempt document recording fees—when separately stated on a settlement statement, closing disclosure or similar form—from retail sales tax and business & occupation tax for escrow businesses and similar settlement agents.

Mitchell told the committee staff-level ambiguity contributed to widely divergent fiscal notes and uncertainty in audits. He said the fiscal note’s high estimate—$50 million to $55 million per year—stemmed from an interpretation that the bill’s language could exempt entire escrow agent service charges when recording fees are separately stated; a narrower reading that exempts only the recording‑fee portion would likely have a much smaller fiscal effect (previous related…