WAC 194-03

WAC 458-20-19403 Single factor receipts apportionment – Royalties – This rule addresses how gross income from royalties is apportioned when the business receives royalty payments from both within and outside the state. Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply.

Single factor receipts apportionment-Royalties Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010.

Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply: WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment

Single factor receipts apportionment -- Royalties; and Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply: WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment

Single factor receipts apportionment -- Royalties; and Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010. The Department has adopted the following emergency rules to explain how these requirements apply: WAC 458-20-19402 (Rule 19402) Single factor receipts apportionment – Generally WAC 458-20-19403 (Rule 19403) Single factor receipts apportionment – Royalties WAC 458-20-19404 (Rule 19404) Financial institutions – Income apportionment

Apportionable royalty receipts attribution Chapter 23, Laws of 2010 1st sp. sess. changed the apportionment requirements for apportionable activities, effective June 1, 2010. The Department had previously adopted emergency rules while it worked with stakeholders to develop permanent rules explaining the implications of this legislation. The Department is at this time adopting a new permanent rule WAC 458-20-19403 (Rule 19403) Apportionable royalty receipts attribution. This rule explains how to attribute apportionable royalty receipts.

Apportionable royalty receipts attribution;

WAC 458-20-19401 Minimum nexus thresholds for apportionable activities, WAC 458-20-19402 Single factor receipts apportionment – Generally, WAC 458-20-19403 Apportionable royalty receipts attribution, WAC 458-20-19404 Financial institutions – Income apportionment and WAC 458-20-19405 CPI-U adjustments to minimum nexus thresholds for apportionable activities The amendments to these rules: *Repeal Rule 19405 and put this language into a new Excise Tax Advisory (ETA); *Delete multiple references to Rule 19405 in Rules 19401 through 19404; and *Recognize provisions of SSB 6333, Sec.

458-20-19402 Single factor receipts apportionment - Generally 458-20-19403 Single factor receipts apportionment - Royalties Part I of Chapter 23, 2010 Laws 1st Special Session (2ESSB 6143) changed the apportionment and nexus requirements for apportionable activities, effective June 1, 2010.

Apportionment of Income by Stockbrokers and Security Houses ETA 3161.2011 Apportionment of Income by Stockbrokers and Security Houses. This Excise Tax Advisory (ETA) explains how stockbrokers and security houses should apportion their income for B&O tax purposes. It discusses when and under what circumstances single factor receipts formula, cost apportionment, and the “60/40 convention” methods of apportionment apply.

Royalties B&O Tax Rate Increase

New "Economic Nexus" in Washington State May Impact "Foreign Corporations"

New "Economic Nexus" in Washington State May Impact Franchisors

Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients

Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income

New "Economic Nexus" in Washington State May Impact Businesses Receiving Royalty/Licensing Income from Patents

New Apportionment Method

New "Economic Nexus" in Washington State May Impact Advertising Agencies Located Elsewhere

B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)

Economic Nexus in Washington State Applies to Securities Brokers/Dealers and Fund Managers