Tag Archives: Washington State

How Did Washington Expand Nexus? The Latest State Tax Legislation

Washington map with flag isolated on white background.

Did you hear about Washington’s latest state tax legislation? This post has the details.

Over the last few years, Washington has taken an interesting approach to its nexus and state tax law. Back in 2015, it adopted a click-through statute and economic nexus thresholds for businesses making sales in the state. Washington currently has a few other interesting bills up for debate, but in the meantime the Department of Revenue (DOR) enacted another piece of legislation that affects economic nexus.

About Washington State Tax Law HB 2163

Washington’s DOR explains how this new state law affects nexus and business and occupation (B&O) tax alongside a few examples on its website. Here’s a brief summary. Continue reading

[Case Study] Washington State’s Economic Nexus and Apportionment

Have you seen Washington state's new nexus statutes?

Have you seen Washington state’s new nexus statutes?

The state of Washington has a couple of interesting statutes they adopted in September as a way to increase the number of businesses with nexus in the state.

  • Nexus for click-through retail transactions
  • Economic nexus threshold for wholesalers

Both provisions establish additional requirements for out-of-state businesses to pay the state’s Business and Occupation (B&O) tax and file in the state depending on the type and amount of business they’re conducting with its residents.

Keep reading for a summary of the two provisions. As you can see, neither of them affects sales tax. We’ve seen more and more states adopt these types of laws for income or franchise tax. However, note that the B&O tax is not an income tax; it’s a gross receipts tax. Continue reading

Washington State’s Solution to Internet Sales Tax

What do you think of Washington State's Internet sales tax plan?

What do you think of Washington State’s Internet sales tax plan?

If you’ve been following the Internet sales tax debate, you know that taxing online transactions is one way that lawmakers foresee increasing state revenue. Still, they can’t start collecting online sales tax until Congress passes federal legislation to mandate and enforce a change in procedure for on-line retailers. Or can they?

Legislators in Washington State’s House created a plan that would allow the state to collect tax from online sales. Because Internet shoppers are supposed to be paying use taxes based on sales taxes they don’t pay from an online purchase, this legislation could be considered simply enforcing existing law.

Washington’s Five-Point Internet Sales Tax Solution

The plan basically expands the definition of “nexus” to prompt online sales tax collection in five areas. Continue reading