A Washington state appeals court judge suggested that both a title insurance company’s and the state tax agency’s interpretations of a sales and business and occupation tax sourcing statute were misguided during oral arguments over an $8.3 million tax bill.
A customer’s “first use” of Chicago Title Insurance Co.’s title insurance and escrow services occurs when the transaction is closed, and is tied to the location of the property, the state argued. The sales should therefore be sourced to Washington—where the subject properties are located—under Revised Code of Washington Section 82.32.730, it told the court.
Washington Judges Press State, Chicago Title on Tax Sourcing Law
