• Washington Strikes and Hits Again - Nonresident Jeweler Subject to Washington B&O Tax
  • December 6, 2017 | Authors: Chelsea E. Marmor; Jonathan A. Feldman
  • Law Firms: Eversheds Sutherland (US) LLP - Atlanta Office; Eversheds Sutherland (US) LLP - New York Office
  • The Washington Administrative Review and Hearings Division of the Department of Revenue found that an out-of-state diamond and gold wholesaler was subject to the business and occupation (B&O) tax based on in-state consigned property. The wholesaler consigned jewels to Washington jewelry retailers for five days at a time, during which time the retailers had the option to purchase. The audit began when the Department identified the wholesaler as a creditor in financing statements within Washington UCC filings. Upon petition of an assessment for the wholesaling B&O tax, the Hearing Division concluded that the consigned jewels constituted substantial nexus as the person who consigns property retains ownership of that property. Further, the B&O tax applied because the jewels were located in Washington at the time they were sold to the retailer and thus the purchaser received the goods in Washington. Det. No. 17-0057, 36 WTD 529 (2017).