SPOKANE, Wash. - The city of Spokane, Washington is suing Fannie Mae and Freddie Mac. The class-action suit claims the two mortgage giants should have to pay a real estate excise tax to Spokane and dozens of other cities across Washington.
When a piece of property is sold in Washington, the seller usually pays a real estate transfer fee. Cities use the tax to fix things like potholes and sewer lines. But Fannie Mae and Freddie Mac say don’t have to pay the tax because they're government-sponsored enterprises.