Sellers of Bundled Services Beware

A recent Washington excise tax determination points out the need for sellers to be careful when bundling retail sales taxable and service taxable activities into a single package or bundle. In Det. No. 13-0059, 32 WTD 232 (2013) the Department of Revenue held that wedding packages were subject to retail sales tax despite the inclusion […]

Washington Adopts Final Computer and Digital Goods Rules

On Wednesday, February 27, 2013 the Washington Department of Revenue (DOR) adopted final regulations on the taxation of computer systems and hardware (WAC 458-20-15501), computer software (WAC 458-20-15502), and digital products (WAC 458-20-15503). In addition, the DOR repealed the very outdated previous rule on information and computer services (WAC 458-20-155). The regulations are substantially consistent […]

Washington Proposes ETA on Printing Activities

Washington Department of Revenue (DOR) has proposed ETA 3174.2013 concerning “B&O Tax and Out-of-State Printers.” The ETA publicizes the DOR’s long-standing position with respect to printing activities. The DOR concludes that printing is an inherently local activity. Further, the ETA indicates that the production and selling activities are merged within a single classification under the […]

Washington Proposes ETA on Professional Employer Organizations

Washington recently proposed an Excise Tax Advisory (ETA) discussing the taxation of professional employer organizations (PEOs). A PEO that provides services to related or unrelated businesses qualifies for a deduction from its gross income for reimbursements of qualifying costs paid on behalf of covered employees if it meets the requirements of RCW 82.04.540. Unlike a […]

Tax Bill Includes Common Paymaster Relief

After two special sessions, the Washington legislature finally reached a compromise budget and along with that passed ESSB 5882, a potpourri of tax provisions. On June 30 Governor Inslee signed the bill. While many Democrats have criticized this bill as providing corporate welfare, most of the preferences provided within the bill are merely a continuation […]