Tax Law

Recent Posts

Battling Statutory Interpretation Principles Leads to an “Unambiguous” Result: Washington Taxes Hospitals
Posted on 24 Aug 2020 by Eversheds Sutherland LLP

The Washington Supreme Court held that a business & occupation (“B&O”) tax deduction contained in RCW 82.04.4311 is limited to payments received from Washington and federal programs, but not payments received from other states’ medical programs... Read More

Prohibited contacts: Washington Company’s Audit Disqualifies its Affiliates from Voluntary Disclosure Program
Posted on 10 Jun 2020 by Eversheds Sutherland LLP

The Washington Department of Revenue’s Administrative Revenue and Hearings Division ruled that a company’s audit disqualifies its affiliates from participating in the state’s voluntary disclosure (VDA) program. One of the criteria for participating in... Read More

Washington Warns Taxpayers Not to Rely on Current Remote Seller Regulations
Posted on 4 Jun 2020 by Eversheds Sutherland LLP

Washington has required remote sellers meeting the $100,000 annual revenue of 200 annual transaction threshold to collect and remit sales tax since October 1, 2018. The requirement was first introduced by regulation and later confirmed and clarified by... Read More

If a Tree Falls in a Forest: Washington Court of Appeals Explains How Referral Services Are Sourced for B&O Tax Purposes
Posted on 13 Apr 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that taxpayer’s receipts for referral services are sourced to Washington for B&O tax purposes to the extent that such receipts are received from a lender located in Washington. The taxpayer operates an online platform... Read More

Podcast: Washington B&O and California LLC Tax Developments
Posted on 8 Apr 2020 by Eversheds Sutherland LLP

This podcast discusses a recent Washington B&O decision and a recent California OTA decision concerning: The WA B&O taxation of services conducted out of state for in state customers The application of the CA LLC tax to a business that ceased... Read More

Representative Representation Required
Posted on 20 Mar 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that Seattle’s method of apportioning the City’s business and occupation tax (B&O tax) was unconstitutionally applied and unfairly apportioned when the City excluded compensation paid to independent representatives... Read More

Failed Test – State of Washington Holds University of Utah Lab Not Exempt from Taxation
Posted on 13 Mar 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that a laboratory created by the University of Utah was not a government entity exempt from Washington taxation. Affirming the lower court’s decision, the Washington Court of Appeals rejected Arup Laboratories, Inc... Read More

Washington Court of Appeals Rules Online Research Taxable as Retailing
Posted on 23 Jan 2020 by Eversheds Sutherland LLP

On January 13, 2020, the Washington Court of Appeals upheld the Washington Department of Revenue’s retailing characterization of taxpayer’s provision of online access to information in a digital research library. Therefore the taxpayer’s service was subject... Read More

Paymaster of None: Washington Denies Taxpayer of B&O Deduction for Paymaster Services
Posted on 30 Oct 2019 by Eversheds Sutherland LLP

The Washington Department of Revenue determined that a taxpayer did not qualify for the B&O tax deduction for payments made to an affiliate for the provision of “paymaster services” under R.C.W. § 82.04.43393. The paymaster services deduction did... Read More

Washington Court Games the Sales Tax Trade-In Exclusion
Posted on 21 Jun 2019 by Eversheds Sutherland LLP

The Washington Court of Appeals upheld the Washington Department of Revenue’s denial of a sales tax exclusion for trade-ins of software and hardware. GameStop provides customers with a trade-in credit for software and hardware and allows customers to... Read More

Pass This On: Washington Court of Appeals Holds Prescription Drug Payments Subject to B&O Tax
Posted on 5 Apr 2019 by Eversheds Sutherland LLP

On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington... Read More

Pass This On: Washington Court of Appeals Holds Prescription Drug Payments Subject to B&O Tax
Posted on 5 Apr 2019 by Eversheds Sutherland LLP

On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington... Read More

Washington Sources ATM Card Processor’s Receipts to the Location of its Customers’ Business Activities for B&O Tax
Posted on 2 Feb 2019 by Eversheds Sutherland LLP

The Washington Department of Revenue Appeals Division ruled that for B&O apportionment purposes under the “services and other activities” tax classification, an out-of-state automated teller machine (ATM) card transaction processor’s receipts are... Read More

Eversheds Sutherland SALT Scoreboard Publication–Third Quarter 2018
Posted on 1 Nov 2018 by Eversheds Sutherland LLP

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT... Read More

Washington Court of Appeals Finds Lowe’s Ineligible for Bad Debt Deduction
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The Washington Court of Appeals upheld the denial of sales tax and B&O tax refund claims filed by Lowe’s Home Centers, LLC based on the bad debt deduction.  Lowe’s, a home improvement retail store with locations in Washington, entered into private... Read More