Washington Tax Decisions

Two shopping malls protest business and occupation (B&O) tax assessed on promotional dues that they collected from their retailers. Because the payments booked as promotional dues were exempt from B&O tax as derived from the rental of real property, we grant the petition.

A Taxpayer, who prepares meals for a fraternity organization at a Washington [educational institution], appeals her retail sales tax refund request denial. Taxpayer argues that income from the services she provides is subject to the service and other activities business and occupation (“B&O”) tax classification and she remitted the retail sales tax in error. We grant the petition and remand the case back to the Taxpayer Account Administration (TAA) for refund of uncollected retail sales tax and an adjustment regarding Taxpayer’s service and other activities B&O tax.