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Sample Industries
We have worked with all industries, including extractors; manufacturers; wholesalers; retailers; construction; professional services; research; real estate investment; nonprofit organizations; governmental; and individuals. Here are some representative samples of our expertise.
In the last decades, Washington
has created numerous special incentive and preference programs for
manufacturers, including sales tax exemptions for equipment, B&O tax
credits for certain expenditures, tax exemptions for new construction, and other
programs. Every manufacturer can benefit from at least one of
these programs
Nonprofit & Governmental Organizations
The only tax exempt organization in Washington is the state
itself and nonprofits and other governmental organizations do not have
blanket tax exemptions from either the B&O tax or the sales tax.
Therefore, these organizations frequently pay substantial tax and are subject to audit risk and verification by the state.
Like for profit businesses, these organizations need to understand
how to minimize both their taxes and audit risk by utilizing the same
exemptions, deductions, and credits that exist for all businesses, and
the additional special preferences that exist only for nonprofits and
governmental organizations. Mark Hugh is the author of
Washington State Taxes for Nonprofit Organizations and the state tax
chapters of the King County Bar Association's manual How to
Form a Nonprofit in Washington State. His experience extends
to property tax exemptions as well and he has collaborated with
different organizations on exemptions subsequently passed into law by
the
Because it lacks an income tax, Washington gets the tax revenue it needs by imposing the sales tax on more services than any other state. An example is construction activities. In many other states, only construction materials are taxed but in Washington, both materials and labor are subject to the sales tax. And, combined with Washington's high state and local sales tax rates, Washington construction activities create substantial tax for the consumer and significant risk for uncollected retail sales tax for the contractor. However, there are still many ways to minimize the tax for the consumer and the risk for the contractor. Through our planning expertise and discrete knowledge of esoteric state tax laws, we have reduced the overall tax obligations of both consumers and contractors as well as successfully defended both parties from audit assessments before both the Audit and Appeals Divisions of the Washington State Department of Revenue.
No area of Washington State and local taxation is more complex than the
B&O, sales, and property tax obligations of healthcare providers,
whether for profit, nonprofit, or governmental organizations. Not
only are they subject
Mark Hugh is the author of Washington Tax for Hospitals and the co-author of the state tax section of the Washington State Society Healthcare Attorney’s Washington Health Law Manual.
Whether your services are subject to the sales tax or only subject to
the B&O tax, there are planning methods, exemptions, and deductions that
can reduce the taxes you pay substantially. The areas of
apportionment, whether between Washington and another state or whether
between Washington cities has been and continues to be an area of both
controversy and opportunity. New Washington rules are in effective
as of June 1, 2010 that alter every organization's apportionment at the
state level. The 39 Wash
Reimbursements doesn't sound like it should be considered an industry, but it is in the world of Washington tax. Because Washington's state and local tax systems are based upon gross receipts without any deduction for any costs whatsoever, reimbursements of expenses, even if a straight pass though, frequently represent taxable gross receipts regardless if reimbursement is from a third party, affiliate, or even a wholly owned subsidiary. It's the worst possible surprise as a result of a state or local tax audit because the auditor finds a whole revenue stream that has been untaxed for four years upon which you owe substantial tax, interest, and penalty. However, through proper advance planning, tax on reimbursements can be completely eliminated or reduced and in many cases, with the advance blessing of taxing authorities. Photographs: Icicle River, Skagit Valley tulips, Eastern Washington field and sky, Winthrop glacier. |
and
we have identified and recovered millions of dollars of program benefits
for manufacturers from small start up organizations to Fortune 500
corporations. Our goal is to transfer our knowledge to your
organization and therefore frequently as a result of our reviews, we
provide customized training for executives, purchasing departments, and
accounts payable personnel so they can capture future tax benefits on a daily
basis. Mark Hugh is the author of Washington State Taxes for
Manufacturers, the only comprehensive manual that covers the
Washington B&O and sales tax incentive programs that apply to
manufacturing in Washington.
Washington State Legislature. In addition, he has defended
organization's property tax exemptions before the Washington State Board
of Tax Appeals, Washington's administrative tax court. 
to
these taxes in special rates and classifications, but there are many
different tax preferences and
exemption programs that apply to certain revenue streams or purchases.
Each preference or exemption is restrictive and limited, and
sometimes depends on the type of the organization who receives the
revenue or makes the purchase, the type of organization who pays the
revenue, or the specialized use of the item. We have worked
with healthcare organizations statewide to help them pay the lowest
correct amount of tax, obtain refunds of excess taxes paid, and defended
them from assessments before both the Audit and Appeals Division of the
Washington State Department of Revenue.
ington cities that impose local B&O tax don't
recognize this change. All this confusion and disagreement creates the
opportunity to revisit how you divide your income between states and
cities to lower your taxes and to protect your organization by complying
with the never static rules for apportionment.