An out-of-state bank had substantial nexus with Washington and was responsible for B&O taxes. The bank conducted two businesses:
- a general credit card business; and
- a private label store credit card business.
The bank argued that it didn’t have a physical presence in Washington to establish nexus there. However, the Department of Revenue found that the bank promoted and marketed its brand in stores by having its name and logo on:
- marketing materials;
- in-store displays; and
- subsequently issued credit cards and billing statements.
The bank also claimed the private label card business was separate from the general credit card business. However, a separate accounting for the two businesses was not applicable, given the business records provided. The Department ruled that the use of a cost apportionment method was proper.
Determination No. 15-0291, Washington Department of Revenue, September 29, 2017, ¶204-300