The Washington Department of Revenue issued Excise Tax Advisory 3107.2021 on May 3, 2021 stating that credit bureau services transferred electronically are subject to retail sales tax and B&O tax. By statute, taxable retail sale includes “credit bureau services” and the sale of “digital goods” and “digital automated services.” Credit bureau services include the assembly
Capital gains tax bill passes Washington state senate
On March 6, a bill to tax capital gains passed the Washington state senate. S.B. 5096, introduced on Jan. 6 by state senators Hunt Robinson and Wilson Nguyen, would impose an excise tax equal to seven percent of a Washington resident’s capital gains, starting January 1, 2022.
Only individuals are subject to the tax, and
Washington Department of Revenue issues draft workforce education investment surcharge rule
On February 17, 2021, the Washington Department of Revenue issued a Preproposal Statement of Inquiry regarding a proposed new rule for the business and occupation tax workforce education investment surcharge for select advanced computing businesses. A public meeting on the proposed rule is scheduled for March 10, 2021. Interested parties can submit written comments in
Washington proposes tax on sales of personal information and data
On January 19, 2021, House Bill 1303 was filed, which would amend the Business and Occupation Tax to impose a tax of 1.8% on gross income of a business engaged in selling or exchanging personal data within Washington. The bill defines “personal data” to include any information that is linked or reasonably linked to an
Quick Update: Delaware, Indiana and Washington
In this episode of the SALT Shaker podcast, host Chris Lee discusses the Verisign decision from Delaware concerning NOL limitations, an Indiana letter ruling concerning the taxation of software (2019-09ST), and a Washington Department of Revenue decision concerning nexus 
(Det. No. 15-0036).
Questions or comments? Email SALTonline@eversheds-sutherland.com.
Washington ALJ Rules Video Game Developer’s Attendance at Trade Show Created Substantial Nexus
On December 4, 2020, the Washington Department of Revenue Appeals Division determined that an out-of-state company’s participation in an annual three-day trade show in Washington state was sufficient to create substantial nexus with the state and subject the company to both business and occupation tax (B&O tax) and retail sales tax. The taxpayer, an out-of-state
Washington considers digital advertising tax
Washington lawmakers may soon begin debate on a digital advertising tax, prompted by a draft copy of a yet-to-be-filed bill. Washington currently applies its business and occupation tax to digital advertising services under the service and other activities classification (1.5%). This bill would instead subject digital advertising services to the business and occupation tax
Washington DOR publishes draft rules on marketplace facilitator obligations
The Washington Department of Revenue has published a draft “pre-proposal” for regulations on the state’s 2019 marketplace facilitator law. The draft guidance includes: definitions of key legislative terms; a summary of who is and isn’t a marketplace facilitator, a requirement for marketplace facilitators to collect other retail taxes such as car rental taxes,
Washington determines that marketplace facilitator fulfillment centers can create physical presence for marketplace sellers
In Determination 18-0255, the Washington Department of Revenue determined that a marketplace seller established substantial nexus in Washington for business and occupation tax purposes by participating in the marketplace facilitator’s “digital reassignment” process. This process allows the facilitator to ship to the marketplace seller’s customers a competitor’s equivalent product if the marketplace seller’s product
Battling Statutory Interpretation Principles Leads to an “Unambiguous” Result: Washington Taxes Hospitals
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. The B&O tax is a gross receipts tax imposed on nearly every type of enterprise, including for-profit and not-for-profit