Washington Tax Decisions

An out-of-state seller of food products protests an assessment of B&O tax and retail sales tax, arguing that two visits to an international wholesale buyer during the last five years to promote sales of its product shipped from outside Washington through buyer’s location in another state to overseas locations do not establish nexus in Washington. We agree. Accordingly, Taxpayer’s petition is granted.

Taxpayer, a used car dealer, petitions for correction of an assessment of retail sales tax and retailing B&O tax based upon the Department of Revenue disallowing a portion of Taxpayer’s claimed bad debt deductions for the value of automobiles subsequently repossessed by Taxpayer. Taxpayer’s petition is denied.

A corporate owner of coin-operated amusement devices protests the assessment of B&O tax on the gross proceeds of the amusement devices by claiming to have joint venture agreements that allow it to reduce its tax liabilities when splitting the revenues with the owners of the establishments where the devices are placed. The petition is denied.

Taxpayer appeals a ruling that Real Estate Excise Tax (REET) applies to transfers or conveyances of real property in circumstances where a receiver is appointed by the superior court in a judicial foreclosure. We grant taxpayer’s petition and hold that the appointment of a receiver does not change the nature of a judicial foreclosure and that the transfer or conveyance of real property in such a circumstance is still effectuated by an order of sale by the court. Because transfers or conveyances made pursuant to an order of sale by a court in a lien foreclosure proceeding do not fit within the statutory definition of a “sale” of real property, the transfer at issue herein is not subject to REET.