Washington Tax Decisions

A daughter, who quitclaimed mortgaged real property to her father who paid off the mortgages with a reverse mortgage, protests the assessment of real estate excise tax on the transfer, arguing the transfer qualifies for the gift exemption in WAC 458- 61A-201. We conclude the transfer was a sale, not a gift, and deny the petition.

A sole proprietor (the taxpayer) who operates a charter fishing business questions whether his purchases of bait should be subject to retail sales. Holding: Fishing bait purchases by the taxpayer are subject to retail sales tax. Petition denied.

A medical equipment provider protests the assessment of retail sales tax on the leasing of (1) a medical device that delivers cold therapy and intermittent compression therapy to an injured joint or limb; and (2) a medical device that generates spinal bone growth to aid in bone repair and to enhance bone fusion. We deny the petition in part and grant the petition in part.