Washington Tax Decisions

Taxpayer protests the Department’s denial of a refund request regarding . . . the calculation of the high technology research and development business and occupation (“B&O”) tax credit (the “R&D Credit”). The petition is granted in part and denied in part.

A taxpayer engaged in printing and mailing services petitions for cancellation of an assessment issued by the Taxpayer Account Administration (TAA) Division of the Department of Revenue (Department), contending TAA erred when it denied the taxpayer’s deduction of separately stated postage charges for delivery of direct mail. We grant the petition.

Taxpayer, a business that provides “crossfit” training, disputes re-classification of its income from the service and other activities business and occupation (“B&O’) tax classification to the retailing B&O and retail sales tax classifications. Taxpayer maintains the services it offers are primarily instructional in nature and distinguishable from retail physical fitness services offered by regular “gyms”. We conclude that improving and maintaining physical conditioning was the primary focus of the classes at issue and sustain the assessment of tax on this income as retail physical fitness services. Taxpayer’s petition is denied.

A bank (Taxpayer) was denied a refund of retail sales tax because it had been granted a waiver of penalties and interest under RCW 82.32.052 (commonly referred to as “Amnesty”) for the same tax period. Taxpayer petitions for reversal of the denial claiming that amnesty for the penalties and interest owed on an unrelated Business and Occupation (B&O) tax liability did not bar it from receiving a refund of retail sales tax. Taxpayer’s petition is granted.

A seller of gold, coins, and jewelry appeals the assessment of retailing business and occupation (B&O) tax and retail sales tax on sales of collectible currency. The petition is denied.