Washington Court docket of Appeals Finds Recycling Firm Entitled to Processing for Rent B&O Tax Classification

Daily Tax Report: State

March 11, 2021, 5:00 AM

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The Washington Court of Appeals March 9 found that Taxpayer, a company engaged in recycling, was entitled to the processing for hire business and occupation (B&O) tax classification for excise tax purposes. During an audit for 2011 through 2014, the DOR concluded that Taxpayer’s employees engaged in services qualifying for the service and other activities B&O tax classification. Accordingly, the DOR assessed the tax, penalties, and interest. Upon administrative review, the DOR upheld the assessment. The superior court dismissed Taxpayer’s appeal for a refund. Taxpayer appealed. The appeals court found: 1) Taxpayer’s employees’ activities transformed nearly useless materials into new…