Another Mattress World
The State of Washington's aggressive tax collection efforts against companies that do business within its borders strike again, here. As a reader points out in linking us to this story, "The guy says he is going to fight the assessment, but my guess is that he will lose. It is sad that people don't understand what 'doing business' in Washington (or any other state) means."
| Posted at 8:44 AM | Permalink |
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Comments (6)
States and locals are hungry for revenue, so they push the envelope. Parking enforcement in Portland is like that, too.
Posted by Allan L. | May 24, 2012 10:18 AM
Every state which receives an audit by State of Washington revenue agents should send an income tax bill for EVERY day each agent works in its state. That might mean the end of this nonsense.
Mike
Posted by Mike | May 24, 2012 10:37 AM
WHAT!!?
Don't they know that crap fosters an "Anti-Business Environment"?
Posted by godfry | May 24, 2012 11:12 AM
Pete Vegas is the CEO of the company discussed in the Washington Post article cited in this posting.
You can listen to a podcast of his ordeal here: http://taxfoundation.org/podcast/show/28200.html (Lasts about 8 minutes)
He is intending to represent himself in the next hearing, instead of using an attorney. I believe there is no question HE WILL LOSE.
One thing he mentions only in passing is that one of his trucks was seen delivering his product in Washington. In my opinion, that alone subjects him to Washington B&O tax. However, he makes some interesting points.
Posted by John | May 24, 2012 3:52 PM
John,
So are you saying that to avoid being taxes all he has to do it stop directly delivering product? (Ship through a common carrier, or make the customer arrange shipment.)
Posted by Michael | May 24, 2012 4:53 PM
Michael-I'm not saying that is all you need to avoid nexus. Using your own vehicles to deliver your product in most states is generally enough to create nexus.
The Washington Post article said, "Washington has a sneaky way of catching companies in its tax trap. A few weeks after one of our trucks stopped at a weigh station during a routine delivery, we received a questionnaire in the mail from the Department of Revenue. The letter seemed innocuous enough, but it absolutely wasn’t.
In my opinion that alone was enough to create nexus. The visit by the CEO just added one more reason for Washington to claim the company was doing business in their state.
Posted by John | May 24, 2012 6:38 PM