The Washington Court of Appeals has held that investment funds are subject to Washington state business and occupation (B&O) tax on their investment income. Although Washington law allows taxpayers to deduct “amounts derived...more
8/7/2023
/ Emerging Growth Companies ,
Estate Planning ,
Income Taxes ,
Investment ,
IRS ,
Net Investment Income ,
State and Local Government ,
Trusts ,
Venture Capital ,
WA Supreme Court ,
Washington
On March 24, 2023, the Washington Supreme Court upheld the state capital gains tax as a constitutional excise tax. The decision overturns the Douglas County Superior Court’s ruling that the tax is an unconstitutional tax on...more
Transfers of real property to certain qualifying entities will no longer be subject to real estate excise tax in Washington State, effective on January 1, 2023. The Washington State Legislature passed Engrossed House Bill...more
6/17/2022
/ Affordable Housing ,
Covered Entities ,
Excise Tax ,
Income Taxes ,
IRS ,
Low Income Housing ,
New Legislation ,
State and Local Government ,
State Taxes ,
Tax Exemptions ,
Washington
The Washington Legislature passed Senate Bill 5096 on April 25, 2021, the last day of the 2021 Washington legislative session. SB 5096 is a state capital gains tax on individual residents of the State of Washington. The state...more
5/3/2021
/ Capital Gains ,
Governor Inslee ,
Income Taxes ,
IRS ,
New Legislation ,
Referendums ,
State Legislatures ,
Tax Deductions ,
Tax Exemptions ,
Tax Reform ,
Trusts ,
WA Supreme Court
The Seattle City Council passed a bill creating a new payroll tax on persons engaged in business in Seattle. While the ordinance has not yet been signed by the mayor (as of publication), the tax was passed by the council on...more
The Washington Legislature’s 2019 session produced four bills increasing business and occupation (B&O) taxes on service businesses (E2SHB 2158), “specified financial institutions” (SHB 2167), international investment managers...more
The Washington Legislature completed its 2019 legislative session with the passage of sweeping changes to the real estate excise tax (REET). The REET legislation was the centerpiece of the Legislature’s efforts to raise...more
Yesterday, the U.S. Supreme Court overruled more than 50 years of Commerce Clause precedent to hold that a state may require an out-of-state retailer with no physical presence in the taxing state to collect sales and use...more
6/25/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
The King County Superior Court held on November 17, 2017, that Seattle’s recently adopted city income tax is illegal under Washington law. The case was resolved on two alternative statutory grounds....more
The City of Seattle adopted Ordinance 125339 on July 14, 2017, which imposes an income tax on Seattle residents and certain irrevocable trusts. The Seattle income tax is imposed at a rate of 2.25% of a resident taxpayer’s...more
The Washington State Department of Revenue has just issued a draft Excise Tax Advisory (“ETA”) (will be hyperlinked to the attached document) in which it concludes that unredeemed gift card receipts (e.g., breakage) which are...more
On April 29, 2015, the Washington Court of Appeals issued an important tax decision in Avnet, Inc. v. Washington Department of Revenue, Dkt. No. 45108-5-II. In its most significant holding, the court of appeals effectively...more
On December 12, 2013, the Oregon Supreme Court issued its decision in Tektronix, Inc. v. Oregon Dep’t. of Revenue. The court held that the taxpayer’s receipts from the sale of goodwill, making up a part of the sale of a...more
In 2010, the Washington legislature passed significant B&O tax changes including the adoption of economic nexus and market sourcing for service activities, as well as the imposition of B&O tax on directors’ fees....more
A federal bankruptcy court judge has held that Washington Mutual, Inc. (WMI), a parent holding company that owned bank subsidiaries conducting business in Oregon, did not have nexus in Oregon by virtue of its ownership of the...more