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Washington Court of Appeals holds business could not dissociate activities from sales to avoid B&O tax nexus

The Washington Court of Appeals has held that a business had substantial nexus for purposes of the state’s Business & Occupation Tax for the sale of goods delivered to Washington addresses even though the activities of its office in the state were not directly connected to the sales. The business met the nexus requirements because its Washington office was significant in establishing and maintaining a market for its goods in the state. As a result, the business was not able to avoid taxation by dissociating its activities in the state from its sale of goods destined to Washington addresses.

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