Chicago Title Insurance Company historically provided title insurance, title search, and escrow services through local branch offices located near the properties involved in the transactions, which could be throughout the United States including Washington. As the company shifted to electronic databases and remote operations, much of the work was performed by affiliated agencies and out-of-state locations rather than in Washington. Following a 2015 audit covering 2009 through 2012, the Washington Department of Revenue assessed $8,310,134 against Chicago Title for unpaid retail, business and occupation (B&O), and use taxes, arguing that the receipts should be sourced to Washington.
Chicago Title appealed the Department’s assessment, and the Administrative Review and Hearings Division affirmed the petition in part resulting in a small reduction of the assessment. In 2018, Chicago Title filed an appeal. Although the trial court ruled in Chicago Title’s favor and ordered a refund of $10,909,764, upon appeal by the Department, the Washington Court of Appeals reversed that decision in 2026. The court concluded that customers first used the title insurance and escrow services in Washington, where the underlying properties were located. Therefore, the receipts were properly sourced to Washington under the state’s market-based sourcing rules. This result upheld the Department’s position that the income remained subject to Washington tax despite the services being performed remotely. (Chicago Title Insurance Co. v. Department of Revenue, No. 59809-4-II (Wash. Ct. App.) , March 3, 2026)