Amounts the state is prohibited from taxing

From the 2024 DOR Tax Exemption Study

Det. No. 15-0321, 36 WTD 330 (June 30, 2017) 332 tax, penalties, and interest, in the total amount of $ . . . .5 The taxpayer appealed the assessments, asserting that the activities of the wholesaling affiliate were insufficient to establish the taxpayer’s nexus with Washington. On appeal, the taxpayer provided additional information regarding the wholesaling affiliate’s activities in Washington in relationship to the taxpayer. The taxpayer provided the agreement between the wholesaling affiliate and its independent representative, and a sample agreement between the wholesaling affiliate and a third-party retailer. In addition, the taxpayer provided responses to a list of detailed questions regarding the wholesaling affiliate’s and its representatives’ communication with third-party retailers (and their customers) in relation to the taxpayer and its website. All the information provided by the taxpayer indicated that the third- party retailers were not required to, and as a practice did not, accept returns of products purchased online by Washington customers, and that the wholesaling affiliate in no way encourages third-party retailers to make purchases or returns via the taxpayer’