Washington Tax Decisions

A bail bond company that is licensed as an insurance agent authorized to solicit and execute surety bail bonds as an agent for a national surety bond insurer on behalf of criminal defendants petitions for correction of a business and occupation (B&O) tax assessment. The bail bond company’s position is that its gross income derived from its surety bail bond business should be taxed at the insurance producers B&O tax rate and that its taxable gross income should not include the amounts held in trust for the national surety bond insurer. Taxpayer’s petition is granted.

A nightclub appeals an assessment of retail sales tax and retailing business and occupation (B&O) tax on cover charges claiming that the charges were for listening to music as a spectator and not for dancing. We uphold the assessment.

An automobile panel manufacturing company protests retail sales taxes assessed on a fire suppression system installed into a spray/bake paint booth that qualified for a machinery and equipment (M&E) sales tax exemption under RCW 82.08.02565. We grant the exemption.