How to enter predominant use on an electronic controlling interest return 

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The names, businesses, and scenario in this video tutorial are fictitious.

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Any resemblance to actual persons, organizations, or companies is purely coincidental and unintentional.

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In this video, I will be going over how to complete an online controlling interest return with a predominant use worksheet.

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If you are completing a controlling interest return that does not require a predominant use worksheet, please watch the videos located on the Real Estate Excise Tax or REET landing page titled Completing a controlling interest transfer return payment required or Completing an exempt controlling interest transfer return under More Information.

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Our landing page can be found at dor.wa.gov/REET.

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We also have a video about how to upload data to an online controlling interest return.

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Predominant use worksheets for paper controlling interest returns can be found under REET forms on our landing page if needed.

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Generally, REET is calculated using a graduated state tax structure per Revised Code of Washington, or RCW, 82.45.060 and Washington Administrative Code or WAC 458-61A-1001.

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When the parcels transferred are predominantly classified as agriculture and timberland, state REET is calculated using a flat rate of 1.28%.

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This video is to provide instruction on how to complete the predominant use worksheet. 

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When filing a controlling interest return online, a physical predominant use worksheet is not required as it is incorporated in the online return.


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The predominant use worksheet page is used to determine the predominant use for real estate transactions that include one or more parcels which qualify as agriculture or timberland, and includes one or more parcels that do not qualify as agriculture or timberland.

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The predominant use worksheet is not required if the transaction involves only one parcel, if all parcels qualify as agriculture or timberland, or if all parcels do not qualify as agriculture or timberland.

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To begin, we will start at the predominant use section of the return.

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If all parcels are used as timberland or agriculture, select Yes to the first question.

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You will not be required to complete the predominant use worksheet if all parcels are used as timberland or agriculture.

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If the answer is No, continue on to the next question.

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If some parcels are used as timberland or agriculture and others are not, select Yes to the second question.

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If the answer is No, you will not be required to complete the predominant use worksheet and you can move on to the state tax section by selecting Next.

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If the answer is Yes, you will be required to complete the predominant use worksheet, to determine the correct state REET rate. Select Next.

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This section is the predominant use worksheet.

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For each parcel, select one of the corresponding check boxes to indicate whether or not it qualifies as agriculture or timberland.

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For each parcel, enter the size using either acres or square feet. Use the same unit of measurement for all parcels.

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For this exercise, I am using acres.

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Enter the assessed value of each parcel next.

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Once all required fields are completed, the worksheet will automatically perform the calculations and determine if the predominant use is timber or agriculture, or not timber or agriculture, as you can see here.

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The next section shows the state tax.

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As you can see here, the graduated rate is not used as a predominant use if the parcels are timberland or agriculture as you can see here.

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As a reminder, the predominant use worksheet will only appear if you answer Yes to the second question, “Are some parcels predominantly used for timberland or agriculture, and will continue in its current use?”

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Select Next to continue with your electronic controlling interest return.