Washington Tax Decisions

[Taxpayer] petitions the Department of Revenue (Department) for correction of an assessment for use tax associated with the use, by a nonresident member of the armed forces, of a motor vehicle purchased outside of Washington but registered in Washington. Taxpayer’s petition is denied

Taxpayer operates a bar and derives income from the sale of food and beverages. Taxpayer petitions for correction of assessment of additional retail sales tax and retailing business and occupation (“B&O”) tax on beverage sales where sales tax was not separately stated on sales receipts. Taxpayer’s petition is denied.

Taxpayer, a natural pet food retailer, appeals an assessment of retail sales taxes it over-collected on sales of goods where its point-of-sale system mistakenly charged sales tax on the full retail price of goods sold to customers at a discount. Taxpayer also appeals retail sales tax assessed on manufacturer discounts that Taxpayer deducted from the retail sales price of goods it sold to its customers. Finally, Taxpayer protests the assessment on the grounds that the State of Washington receives a windfall by collecting over-collected sales taxes. Taxpayer’s petition is denied.

Three community solar projects (CSPs) object to a ruling that they must register, report, and possibly pay business and occupation (B&O) tax on incentive payments they receive from public utility districts (PUDs). Because they are engaged in business, the CSPs must register and report the incentive payments as gross income subject to B&O tax. We deny the petitions.

A business performing carpet cleaning and related services for multi-family housing complexes, protests an assessment of retailing business and occupation (B&O) tax and retail sales tax on income from carpet cleaning for water damage, carpet repair, and deck cleaning, asserting the services constitute janitorial services excluded from the definition of “retail sale” pursuant to RCW 82.04.050(2)(d) and WAC 458-20-172. The petition is denied.

A corporation (“Taxpayer”) [petitions for reconsideration of a determination sustaining the assessment of use tax and/or deferred sales tax on] dredging services it purchased for its anaerobic lagoons, because the services are not exempt from [retail sales tax under RCW 82.08.02565] and WAC 458-20-13601 (Rule 13601). . . . [We grant the petition in part.]

A taxpayer engaged in the furniture rental business petitions for reconsideration of a determination remanding the matter to Audit Division for adjustments to taxes arising from the disallowance of retail sales tax exemptions on rentals to Native Americans . . . . Taxpayer’s petition for reconsideration is denied and the post-audit adjustment (PAA) issued by the Audit Division after the remand is affirmed.

A taxpayer that collected and transported hazardous waste from Washington customers to its own hazardous waste disposal site [out-of-state] petitions for reconsideration. The taxpayer requests the Department rule that the costs of certain chemicals and binding reagents it uses to bind and dry hazardous waste before depositing that hazardous waste in its [out-of-state] landfill be allocated to [that state]. Taxpayer’s petition for reconsideration is denied

A truck detailing business appeals an assessment of use tax and/or deferred retail sales tax on its purchase of polishing compound supplies used in performing its detailing services, asserting that the specialty polishing compounds are resold to the customer as part of the detailing service. The taxpayer’s petition is denied.

A limited liability company (LLC) that was assessed retail sales tax, business and occupation (B&O) tax, penalties, and interest, protests the assessment on the grounds that its current owners purchased the LLC from a prior owner during the audit period. The LLC’s current owners claim that they should not be held accountable for periods when the LLC was owned by someone else. Because the LLC was engaged in business as a separate legal entity for the entire audit period, we hold that the change in ownership of the LLC is immaterial, and that the LLC owes the tax, penalties, and interest that it accrued through its business activities. Taxpayer’s petition is denied.

A private golf club (Taxpayer) appeals the Department of Revenue’s (Department’s) estimated assessment of deductible member dues. We grant the petition in part, and remand to the Department’s Audit Division for adjustments consistent with this determination.