The Washington Department of Revenue has issued revised economic nexus thresholds for state business and occupation (B&O) tax purposes. When the cumulative percentage change in the consumer price index for all urban consumers changes by 5% or more from the date the thresholds were last adjusted, the Department must adjust the thresholds to reflect the change. Effective January 1, 2018, economic nexus for Washington B&O tax purposes is extended to persons engaged in retail sales as long as the person has more than $285,000 (previously $267,000) in receipts from Washington, more than $57,000 (previously $53,000) in property or payroll in the state, or at least 25 percent of the person’s total property, payroll, or total receipts in Washington. The adjusted thresholds apply to tax periods beginning after the adjustments are made. This economic nexus test only applies if there is no physical presence in the state. Retailers with inventory in 3rd party warehouses are subject to the B&O tax regardless of their sales amounts into the state. To see our previous news item on this topic, click here. (Excise Tax Advisory No. 3195.2017, Washington Dept. of Revenue)