Washington law provides that for this State to assert B & O tax jurisdiction over an out of state business that makes wholesales into this State two things must occur: (1) the seller must have nexus with this State, and (2) the goods must be received by the buyer in this state. WAC 458-20-193(7). That there… CONTINUE
Confusion and Expense for Small Businesses Dealing with Washington Cities’ B & O Taxes
The Association of Washington Cities states that as of October 2007 approximately 188 cities required a local business license (including the 40 with a city B & O tax). The city B & O taxes, like the Washington Sate B & O taxes are levied at a percentage rate on the gross receipts of the… CONTINUE
Unsure if You Have to Collect Washington’s Sales Tax on Your Service Activities? – You May not be Alone.
Businesses that provide services generally know whether or not they are required to collect sales tax. But sometimes there are cases where the law is unclear whether or not sales tax must be collected. Often, in fact, the Department of Revenue may treat taxpayers within the same industry differently, ruling in some cases that a business must collect… CONTINUE
Court Rejects City of Seattle Overreaching
Many businesses are surprised not only that the City of Seattle has a tax on business receipts to begin with, but that the City of Seattle attempts to extend its taxing authority so far. This article looks at one case in which the courts drew a line – a case involving the well know… CONTINUE
The Continuing Debate Over Defining Taxable Income – Getty Images (Seattle), Inc. v. City of Seattle and Klein Honda v. State of Washington
In 1960, the US Supreme Court ruled that when Mr. Berman gave his friend, Mr. Duberstein, a Cadillac to thank him for some business referrals, Mr. Duberstein (who thought he had received a gift and did not report it as income) had to include the car in income as taxable compensation. The Supreme Court said… CONTINUE