The Washington Department of Revenue recently released informal guidance regarding the taxability of online instructional classes. The guidance states that live classes where participants can interact in real-time with the presenter are not subject to sales tax; however, pre-recorded videos and classes are subject to sales tax. This distinction focuses on the live ability to

Addressing cross-motions for summary judgment from the Seattle Metropolitan Chamber of Commerce and the City of Seattle, the Superior Court of Washington for King County held that the City’s new payroll expense tax, which applies to businesses that spend $7 million or more on payroll in Seattle, is constitutionally permissible.

On July 6, 2020, the

On May 7, 2021, the Washington Department of Revenue issued Excise Tax Advisory 3223.2021, providing guidance on the proper taxation of grocery food and restaurant delivery services provided through marketplace facilitators. Marketplace facilitators that are facilitating the retail sale of prepared food or groceries through its marketplace are responsible for collecting and remitting sales

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

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

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

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

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 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