In response to the ongoing coronavirus (COVID-19) pandemic, the U.S. Congress, the Executive Branch, and the Internal Revenue Service have taken several actions intended to provide immediate relief to taxpayers, including by postponing federal income tax return and tax payment deadlines, providing businesses with tax credits to the extent that such businesses are subject to new paid sick and paid family and medical leave requirements, and declaring COVID-19 a national emergency.

Seeking to preserve the vitality of commercial corridors and reduce retail vacancies, San Francisco voters approved the Vacancy Tax Ordinance, which authorizes a tax assessment on vacant retail space beginning January 1, 2021.

The Washington Legislature completed its 2019 legislative session with the passage of sweeping changes to the real estate excise tax (REET).

The Washington Legislature’s 2019 session produced four bills increasing business and occupation (B&O) taxes.

The recent tax reform bill, commonly referred to as the Tax Cuts and Jobs Act of 2017 (the Act), was signed into law on December 22, 2017. The Act includes a new income tax deferral regime for certain employee stock options and restricted stock units (RSUs) granted by eligible private corporations under broad-based programs that are exercised or settled after December 31, 2017.

Certain aspects of the tax reform bill signed by President Trump last Friday create significant year-end planning opportunities for businesses that are able to act quickly.

Retailers and other businesses use loyalty and rewards programs to draw in customers throughout the year. However, there are several sales and use tax consequences of promoting consumer loyalty.

Examining a loyalty program reward's form, structure, and parameters is essential for determining the state sales and use tax consequences.  Read the full article.

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 eliminated the transactional nexus requirement for Washington B&O tax.  

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 business division, were excluded from the sales factor under ORS 314.665(6)(a).

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. However, the largest revenue raiser came from a temporary increase of the service B&O tax rate from 1.5% to 1.8% from May 1, 2010 through June 30, 2013. While there were concerns that the 2013 legislature would extend the “temporary” increase, it did not. As a result, the service B&O tax rate reverted to 1.5% beginning on July 1, 2013.

On June 4, 2013, the Thurston County Superior Court issued a written decision affirming the opinion of the Washington State Board of Tax Appeals (Board) in AOL Inc. v. Washington Department of Revenue, No. 11-076 (Wash. B.T.A. May 9, 2012).

This article, Part II of a two-part series, highlights some of the major state and local tax questions and developments in Washington state.

There was a great deal of state tax activity in Oregon and Washington in 2012 with the prospect of more developments to report in 2013. This article, Part I of a two-part series, highlights some of the activity in Oregon.

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 banks, the ownership of intangibles used by the banks in Oregon for no fee and the receipt of dividends from the banks.

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently issued much-anticipated final regulations under Section 4191 of the Internal Revenue Code (Code), which imposes a 2.3% tax on sales of any “taxable medical device” by a manufacturer, producer or importer (collectively referred to as “manufacturers”). The IRS simultaneously issued Notice 2012-77, providing interim guidance to manufacturers while it continues to study certain issues that are not addressed by the final regulations.

On May 9, 2012, the Washington State Board of Tax Appeals granted summary judgment to AOL, Inc., holding that AOL's purchases of services permitting its customers to connect with AOL's data center and the Internet were not subject to retail sales tax.  AOL Inc. v. Wash. Dep't of Revenue, No. 11-076 (Wash. B.T.A. May 9, 2012).  The procedural lessons of this case may be as important in Washington tax practice as the substantive case.

In double overtime, the Washington State Legislature ended the 2012 legislative session Wednesday morning, April 11, closing a roughly half-billion dollar shortfall for the two-year budget cycle.

On December 11, 2010, in a one-day special session, the Washington state legislature passed its first ever amnesty program, which the Governor is expected to sign.  Under certain circumstances, taxpayers paying past tax liabilities will have their interest and penalties waived.

The U.S. District Court for the Western District of Washington granted Amazon.com's request for  declaratory judgment that the North Carolina Department of Revenue’s (the Department) information requests for the production of customer purchase records violated the First Amendment and the Video Privacy Protection Act (VPPA), 18 U.S.C. § 2710.  Amazon.com LLC v. Lay, No. C10-664-MJP, 2010 WL 4262266 (W.D. Wash. Oct. 25, 2010).

Collecting the right retail sales tax is sometimes a difficult task, but the government should not intentionally make it harder.  Unfortunately, because of a recent change in the law, retailers with operations in Washington state faced a confusing and uncertain tax environment, made worse by an unfortunate injunction obtained by the City of Bellingham and Whatcom County.

On April 23, 2010, Governor Christine Gregoire signed into law Second Engrossed Substitute Senate Bill 6143, which extends Washington's business and occupation (B&O) tax to corporate directors beginning July 1, 2010.

On April 12, 2010 the Washington State Legislature resolved the budget impasse and adopted a $794 million tax package that the governor is expected to sign.  The tax bill, 2ESSB 6143, contains a number of major changes to Washington’s tax system.

Three major tax bills were introduced this week as part of the governor’s budget package.  All three appear to be on a fast track and have been scheduled for a hearing before the House Finance Committee this coming Tuesday January 26, 2010 at 1:30 p.m. 

The days of self-issued resale certificates in Washington state are numbered.  Effective January 1, 2010, buyers in Washington must provide a reseller permit or a Streamlined Sales and Use Tax Agreement ("SSUTA") exemption certificate with the buyer’s reseller permit number in order to purchase goods and services for resale without paying sales tax.

The SEC is forming an Advisory Committee on Smaller Public Companies. The Committee will assess the effect of the Sarbanes-Oxley Act and other securities regulations on smaller public companies and will recommend appropriate changes to the SEC, based on the following objectives: protecting investors; examining whether the current regulations impose costs on smaller companies proportionate to their benefits; identifying methods to minimize costs and maximize benefits; and facilitating capital formation by smaller companies.