Washington DOR Finds Taxpayer’s Utility Revenue Was Exempt from Sales and Use, Excise Tax

The Washington Department of Revenue (DOR) Administrative Review and Hearings Division June 16 found that tenant payments for utilities provided by third parties were exempt from public utility tax (PUT) and business and occupation (B&O) taxes for sales and use and excise tax purposes. Taxpayer, a municipal corporation operating an independent seaport, was denied a refund for utility charges. Upon review, the DOR noted: 1) Taxpayer’s utility revenue from long-term tenants was exempt from PUT as it wasn’t part of their municipal or port business; 2) leasing real property was unnecessary for Taxpayer’s transportation or public service activities as a ...