Washington Tax Decisions

A corporation (the taxpayer) protests a letter ruling from the Taxpayer Information & Education (TI&E) Section of the Department of Revenue declaring that it is providing a dating service and should have been collecting and remitting retail sales tax and reporting retailing business and occupation (B&O) tax rather than service and other activities B&O tax. Holding: TI&E was correct in concluding that the taxpayer is providing a dating service that is subject to retail sales tax.

Taxpayer protests an assessment of service and other business and occupation tax, arguing that its income from the sale of individual fishing quotas for the privilege of fishing in Alaska should be sourced to the state where the natural resources are located. Based on the doctrine of mobilia sequuntur personam, and on the Taxpayer’s Washington domicile, the petition is denied.

An escrow company that prepared documents and hired a third party to file the documents protests retail sales tax assessed on its charges for those services. Because the documents needed to be prepared and then recorded to complete the escrow, charges for those activities constituted escrow services subject to retail sales tax. We deny the petition.

Seed manufacturer protests the denial of the sales and use tax deferral for investments in rural counties with respect to a seed vault and a storage building that houses equipment used to plant and harvest seed. We deny the petition.

A Washington business engaged in site preparation activities and extracting timber for sale, petitions for correction of an audit assessment that includes retailing business and occupation tax and retail sales tax on underreported income, and use and/or deferred sales tax on the purchase of a CAT excavator used for extracting timber. The taxpayer contends the Audit Division erred when it determined gross income based on the taxpayer’s bank deposits, because the bank deposits include the proceeds of bank loans. The taxpayer also contends that logging equipment is exempt from retail sales and use tax. Because the taxpayer failed to provide any documentation regarding the bank loans, and because the purchase of equipment for extracting timber is not exempt from retail sales or use tax, we deny the petition.

Taxpayer requests the Washington State Department of Revenue approve Taxpayer’s application for a Commute Trip Reduction Credit even though Taxpayer filed the application after the due date. We deny Taxpayer’s petition.