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Nexus Standard for Wholesale Sales - Effective Sept. 1, 2015

Nexus Standard for “Click-Through” Retail Sales - Effective Sept. 1, 2015


Businesses outside of Washington

If your business earns income attributable to Washington that would be taxable under an apportionable B&O classification and meets one of the following thresholds within a calendar year, you have economic nexus with Washington:

  • A business entity is organized or commercially domiciled in Washington
  • More than $53,000 of payroll in Washington
  • More than $53,000 of property in Washington
  • More than $267,000 of gross income from apportionable activities attributed to Washington
  • At least 25 percent of your total property, payroll, or income in or attributed to Washington

If you have economic nexus, you must register your business with the Washington State Department of Revenue and report and pay Washington B&O tax.

Note:  In determining whether your business meets the gross income thresholds, you must also include income from wholesale sales sourced to Washington.

These thresholds are effective for periods starting in 2015. Please use these figures until revised. See Excise Tax Advisory (ETA) 3195.2015 for prior years.

How do I register my business in Washington State?

Register your business online where you will find step-by-step instructions, information and resources.

Economic Nexus - Apportionable Income

Effective June 1, 2010, an “economic nexus” standard rather than a “physical presence” standard was created with regard to certain activities. It requires some businesses earning “apportionable income” (including activities subject to the service and other activities and royalty B&O tax classifications) from Washington customers to be subject to taxes whether or not they maintain offices in the state or have any physical presence.

Effective September 1, 2015, the time frame for determining whether a business has exceeded any of the economic nexus thresholds changes from the current tax year to the immediately preceding tax year. Part II of ESSB 6138.


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