News & Events

News & Events


Edwards Quoted in Tax Notes Article Regarding Washington State’s New Nexus Provisions

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Lane Powell Shareholder Scott Edwards was quoted in an August 7 Tax Notes article titled “Washington DOR Gets Ready to Enforce New Nexus Provisions.” The article discussed Washington state’s new tax legislation, which includes provisions establishing click-through nexus for online retailers and expands B&O taxes to out-of-state wholesalers.​

However, state and local tax practitioner Scott Edwards with Lane Powell PC said the state’s previous expansion of the B&O tax to out-of-state companies providing services in the state gave the tax agency prior experience. …

… Edwards, whose clients include businesses, said the economic nexus argument is more legally vulnerable than click-through nexus, which was upheld by New York’s highest court and denied review by the U.S. Supreme Court. …

…”There’s both a structural and a constitutional issue with the extension of economic nexus,” Edwards said. …

… He said he believes the economic nexus provision will ultimately be challenged in court. “If this works, I would expect [Washington state] to extend economic nexus to all B&O tax classes . . . and I’d be concerned other states would follow suit,” he said.