Washington Tax Decisions

2016
Title Date Document Description
Det. No. 15-0308, 35 WTD 251 (2016) 35WTD251.pdf

A flooring company disputes the assessment of retail sales tax arguing that the Department erred when calculating tax liability, and further, contests the assessment of a misuse of reseller permit penalty on certain purchases from Washington State businesses contending that it made the purchases as a subcontractor or government contractor, and therefore, did not owe retail sales tax. Taxpayer also requests the waiver of interest and a late-payment of return penalty on the grounds that they are excessive and unnecessary. We conclude that the business has not shown that the Department erred when calculating and assessing retail sales tax or when the Department imposed the misuse of reseller permit penalty. We further determine that the business has not shown a basis for a waiver of interest or penalties. Accordingly, we deny the petition.

Det. No. 15-0277, 35 WTD 246 (2016) 35WTD246.pdf

An out-of-state company that provided marketing services for a Washington insurance company, protests additional B&O taxes assessed under the service and other activities classification when its deduction for marketing materials was disallowed. The company contends that its income should be taxed under the lower B&O tax rate for the activities of insurance producers or agents. Because the company provided marketing services for the insurer, rather than insurance services for the policy holders, its income was properly taxed under the service and other activities B&O tax classification. In the alternative, the company seeks to deduct payments to a foreign affiliate, under a transfer pricing agreement. We deny the petition.

Det. No. 15-0262, 35 WTD 241 (2016) 35WTD241.pdf

A manufacturer objects to an assessment after it acquired the assets of a predecessor that had a high-technology sales and use tax deferral. The manufacturer argues that the contract between the parties indemnified the manufacturer from any potential tax liability for taxes deferred on the qualified buildings portion of the investment project . . . . We deny the petition.

Det. No. 15-0252, 35 WTD 236 (2016) 35WTD236.pdf

A grantor of a 50% interest in real property protests the REET assessed on a quit claim transfer where the grantee had paid 100% of the mortgage payments on the property for a period of ten months prior to the transfer. We deny the petition.

Det. No. 15-0251, 35 WTD 230 (2016) 35WTD230.pdf

A German pharmaceutical company with no physical presence in Washington objects to the assessment of Washington’s B&O tax on royalties it received that were based on the sales of its products in this state. Taxpayer’s petition is denied.

Det. No. 15-0249, 35 WTD 225 (2016) 35WTD225.pdf

A non-profit organization that operates a martial arts training center appeals the denial of the RCW 82.04.4282 deduction it claimed for its membership dues income, asserting that the dues are deductible donations. The taxpayer’s petition is denied.

Det. No. 15-0223, 35 WTD 217 (2016) 35WTD217.pdf

A winery objects to the assessment of use tax on wine it provided free of charge for wine tasting and on items it gave free of charge to its wine-making class participants. The winery also protests the disallowance of the sales tax exemption it took for sales of wine to qualified nonresidents. The winery further asserts that tax should be waived because it relied on the erroneous tax advice and services of its accountant. We grant the petition in part and deny it in part.

Det. No. 15-0095, 35 WTD 213 (2016) 35WTD213.pdf

A LLC protests the disallowance of a REET exemption. Taxpayer argues the transaction met the requirements of the nominee exemption. We deny the petition