State of Wayfair: Watch Your Gross Receipts in Washington

Washington is putting corporate taxpayers on notice that the Wayfair ruling will drive the state’s Business and Occupation Tax beginning in 2020.

Earlier this year the Evergreen State made revisions to its “substantial nexus” requirements, the standard by which a taxpayer has economic presence in Washington, across several tax classifications, said Travis Yonker, the state Department of Revenue’s program manager for legislation and policy.

The revisions included language that aligns the taxability threshold expressed in Wayfair for sales tax purposes to the business and occupation tax, Washington’s primary corporate tax imposed on the gross ...