Seattle Rule 5-531

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

(1) Amounts derived from the sale of real estate are notsubject to tax under the business license tax. However, no exemption is allowedwhere a mere license to use real estate is granted (see Seattle Rule 5-530).Further, no exemption is allowed for commissions received in connection withsales of real estate or for interest received by persons engaged in thebusiness 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, andother natural resources in place are sales of real estate, and are not subjectto tax under the business license tax.

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

(4) Any person who cuts timber, or who mines or quarriesminerals, or who takes other natural resources from their own land is subjectto tax as an extractor under the business license tax. (See Seattle Rule5-100).

DIRECTOR'S CERTIFICATION

I, Glen M. Lee, Finance Director of the City ofSeattle, do hereby certify

under penalty of perjury of law, that the within andforegoing is a true and

correct copy as adopted by the City of Seattle,Department of Finance and

Administrative Services.

     DATED this ______ day of July 2016.

                              CITY OF SEATTLE,

                              a Washingtonmunicipality

                         By:     ____________________________________

                                Glen M. Lee,Finance Director

                                Department of Finance andAdministrative Services

Effectivedate: July 14, 2016