Washington excise tax rules on interstate sales of tangible personal property and minimum nexus thresholds have been amended.
Minimum Receipts Thresholds Establish Nexus
Under the amended rules, a person making retail sales is deemed to have business and occupation (B&O) nexus when its receipts meet certain thresholds. The receipts threshold is met when the person has:
- more than $267,000 in receipts from Washington; or
- at least 25% of total receipts in Washington.
Trailing Nexus Standard
In addition, Washington’s trailing nexus standard has been revised. If a person stops the business activity that created nexus in Washington, nexus will not immediately end. Nexus will continue in the calendar year following the calendar year in which the person had nexus with Washington.
The amended rules can be viewed on the Washington Department of Revenue website at https://dor.wa.gov/sites/default/files/legacy/Docs/Rules/draft/20-193-19401cr3pfrmdraftMarch2018.pdf.
WAC 458-20-193 and WAC 458-20-19401, Washington Department of Revenue, effective April 6, 2018