Washington State Defends Tax on Utility Meter Data Conversion

The Washington Department of Revenue properly assessed over $16 million in sales tax on a company that converts meter data for utility companies, the agency told a state appeals court.

Washington’s digital products law imposes sales tax on “digital automated services” but exempts “data processing services.” Landis+Gyr Midwest Inc.'s services don’t fall under the exemption because the company just processes raw data for Puget Sound Energy, the department told the Washington Court of Appeals.

The primary object of the company’s automated meter reading services is to provide timely and accurate information, the state said in a response ...