Robert (Bob) L. Mahon Partner

Until now, there has been no single reference to guide cannabis lawyers through the full continuum of legal challenges in the industry. This treatise fills that gap from a sophisticated perspective by highlighting key issues in more than a dozen practice areas and covering the impact of cannabis law from U.S. state and federal, as well as Canadian, enforcement and regulatory agencies.

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 July 6, 2020, by a veto-proof majority (7-2) and is expected to become law effective 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.

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 taxes on sales of goods and services delivered in the state.

The King County Superior Court held on November 17, 2017, that Seattle’s recently adopted city income tax is illegal under Washington law.

The City of Seattle adopted Ordinance 125339 on July 14, 2017, which imposes an income tax on Seattle residents and certain irrevocable trusts.

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.

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.

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.

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.