Effective June 1, 2010, four new rules have been adopted by the Washington Department of Revenue to implement legislative changes regarding business and occupation (B&O) tax nexus and apportionment. The legislation (Ch.23 (S.B. 6143), Laws 2010, 1st Special Session) established new nexus standards and single factor receipts apportionment for apportionable activities. 1) WAC 458-20-19401 (Minimum Nexus Thresholds for Apportionable Activities): Explains that B&O taxes may not be imposed on a business unless that business has substantial nexus with Washington. Also describes the minimum nexus thresholds for the B&O taxation of apportionable activities. 2) WAC 458-20-19402 (Single Factor Receipts Apportionment – Generally): Establishes a new apportionment method for businesses engaged in apportionable activities and that have nexus with Washington. This rule does not apply to the apportionment of income of financial institutions taxable under RCW 82.04290, which is governed by WAC 458-20-19404, nor the receipt of royalty income from granting the right to use intangible property under WAC 458-20-19403. 3) WAC 458-20-19403 (Single Factor Receipts Apportionment – Royalties): Explains how gross income from royalties must be apportioned when the business receives royalty payments from both within and outside the state. 4) WAC 458-20-19404 (Financial Institutions – Income Apportionment): Explains how gross income from engaging in business as a financial institution is apportioned when the financial institution engages in business both within and outside the state. Additional rules and regulations apply. (WAC 458-20-19401, -19402, -19403, and -19404, Washington Department of Revenue, adopted on an emergency basis effective June 2, 2010)