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Washington Court of Appeals holds wholesale fuel distributor that made regular deliveries in its own vehicles had B&O tax nexus

The Washington Court of Appeals has held that an out-of-state wholesale fuel distributor that routinely made deliveries in Washington using its own vehicles had substantial nexus for purposes of the business and occupation tax. The taxpayer’s regular deliveries established its physical presence in Washington. Also, the taxpayer conducted substantial business activities in Washington because, as a wholesale fuel distributor, it sold both the fuel and the delivery service to customers in the state. Thus, the taxpayer’s physical presence and its delivery activities were significantly associated with its ability to establish and maintain a market in Washington for its sales.

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