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Washington Board of Tax Appeals holds merger extension and termination fees were not subject to B&O tax

The Washington Board of Tax Appeals has granted a taxpayer’s motion for summary judgment and held that extension and termination fees that the taxpayer received pursuant to a merger agreement were casual or isolated sales that were not subject to the state’s business and occupation tax. The fees resulted from isolated sales of contract rights rather than routine transactions that were integral to the taxpayer’s manufacturing business.

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