A wholesaler who sold jewels on consignment had B&O nexus with Washington. Since its jewels were in Washington when they were purchased, the taxpayer had physical presence nexus.
The taxpayer shipped jewels to retailers in Washington on consignment. If a customer chose the taxpayer’s jewels for its order, the retailer bought the jewels from the taxpayer. The retailer returned jewels it didn’t buy for resale to the taxpayer. Each consignment lasted five days.
Notably, the taxpayer did not make retail sales in Washington. Also, it had no employees in Washington.
Determination No. 17-0057, Washington Department of Revenue, October 31, 2017, ¶204-315
The Washington Department of Revenue has also addressed nexus for out-of-state banks.
Go to Source
Powered by WPeMatico