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An out-of-state wholesaler of vehicle chassis did not create nexus in Washington for business and occupation (B&O) tax purposes with respect to one type of chassis it sold because all chassis sold were delivered to body shops outside of Washington to be incorporated into vehicles that were then delivered by the body shops to dealers in Washington. According to the sample sales invoices provided by the wholesaler, all of the chassis were received outside of Washington. Accordingly, the sales of the chassis occurred outside Washington and were, therefore, not subject to Washington B&O tax.  However, the wholesalerdid create nexus in Washington with respect to another type of chassis it sold because warranty services were offered by the wholesaler through a third-party in Washington.Rule 193(102)(d)(vii)(B) expressly includes “[b]eing available to provide services associated with the product sold (such as warranty repairs, installation assistance or guidance, and training on the use of the product), if the availability of such services is referenced by the seller in its marketing materials, communications, or other information accessible to customers” as an activity establishes nexus. The wholesaler and affiliates shared the same web site and there was no distinction between them in terms of offering of products and services.  (Determination No. 15-0279, Washington Department of Revenue, January 31, 2016)

(02/23/2016)

The Washington Department of Revenue has announced that nexus continues for the remainder of the calendar year and the following calendar year for all taxes reported on the excise tax return which includes retail sales tax and business & occupation tax when either the nexus standard for (a) apportionable activities and for sales subject to wholesaling business and occupation (B&O) tax or (b) other business activities, is met  The one-year trailing nexus is effective as of June 1, 2010.(Special Notice, Washington Department of Revenue, February 2, 2016)

(02/23/2016)

On February 11, 2016, the U.S. Senate approved a permanent extension of the Internet Tax Freedom Act (ITFA) that is included in H.R. 644, the Trade Facilitation and Trade Enforcement Act of 2015. The bill also establishes an end date of June 30, 2020 for the seven states that currently impose a tax on internet access: Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas, and Wisconsin. President Obama is expected to sign the permanent extension of the ITFA into law. The House of Representatives had previously passed H.R. 235, the Permanent Internet Tax Freedom Act, on December 15, 2015.  For our previous news item on this topic, visit Internet Tax Freedom Act Extended Through October 1, 2016.

 

UPDATE: On February 24, 2016, President Barack Obama signed into law the permanent extension of the Internet Tax Freedom Act.

 

(Trade Facilitation and Trade Enforcement Act of 2015)

(02/23/2016)

On December 18, 2015, President Barack Obama signed H.R. 2029 – Consolidated Appropriations Act, 2016. The Act extends the Internet Tax Freedom Act (ITFA) through October 1, 2016. Prior provisions that grandfather taxes that existed prior to October 1, 1998 are also extended through October 1, 2016. For our previous news item on this topic, see Internet Tax Freedom Act Extended Until December 11, 2015. (H.R. 2029 – Consolidated Appropriations Act, 2016)

(01/18/2016)

On September 30, 2015 the U.S. House of Representative passed H.R. 719, which includes a provision that would extend the Internet Tax Freedom Act (ITFA) through December 11, 2015. The ITFA was scheduled to expire on October 1, 2015. The bill will now go to President Obama for signature.

 

To see our previous news item on the ITFA, visit Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced.

 

To see an update on this news item, visit Internet Tax Freedom Act Extended Through October 1, 2016,

 

(H.R. 719)

(10/26/2015)

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