Capital gains paid

From the 2024 DOR Tax Exemption Study

Det. No. 12-0216, 32 WTD 134 (June 27, 2013) 136 ANALYSIS The State of Washington imposes the business and occupation (“B&O”) tax on every person in the state for the privilege of engaging in business. RCW 82.04.220. This includes “all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or another person or class, directly or indirectly.” RCW 82.04.140. An “association” such as the water association in this case is included within the definition of “persons” subject to tax under this state’s tax structure. RCW 82.04.030; see also Det. No. 94-219, 15 WTD 55 (1995). The B&O tax is “‘extensive and is intended to impose . . . tax upon virtually all business activities carried on in this State.’” Analytical Methods, Inc. v. Dep’t of Revenue, 84 Wn. App. 236, 241, 928 P.2d 1123 (1996) (quoting Palmer v. Dep’t of Revenue, 82 Wn. App. 367, 371, 917 P.2d 1120 (1996)). Therefore, every person engaged in business in Washington, including Taxpayer, is subject to B&O tax unless entitled to an exemption. The measure of the B&O tax is the “gross proceeds of sales, value proceeding or accruing, or gross income of the business.” RCW 82.04.080. “Gross income of the b