Wash. Court of Appeals published opinion — D2 60254-7-II Published Opinion.pdf

all business activities carried on within [Washington].’” Dynamic Res., Inc. v. Dep’t of Revenue,

21 Wn. App. 2d 814, 819, 508 P.3d 680 (2022) (internal quotation marks omitted) (quoting Steven

Klein v. Dep’t of Revenue, 183 Wn.2d 889, 896, 357 P.3d 59 (2015)).

B&O tax is calculated based on “the application of rates against value of products, gross

proceeds of sales, or gross income of the business, as the case may be.” RCW 82.04.220(1)

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No. 60254-7-II

(emphasis added). “The business and occupation tax is not a tax on either profit or net gain or

capital gain or sales, but a tax on the total money or money’s worth received in the course of doing

business.” Budget Rent-A-Car of Washington-Oregon, Inc. v. Dep’t of Revenue, 81 Wn.2d 171,

173, 500 P.2d 764 (1972); Rho Co. v. Dep’t of Revenue, 113 Wn.2d 561, 566-67, 782 P.2d 986

(1989) (stating “as a general rule, the base amount from which the B&O tax is calculated does not

allow for deductions for the expenses of conducting business”). Whether a profit is made is

immaterial. Budget Rent-A-Car, 81 Wn.2d at 173.

Under RCW 82.04.080(1), “gross income of the business” is defined as:

[T]he value proceeding or accruing by reason of the transaction of the business
engaged in and includes gross proceeds of sales, compensation for the rendition of
services, . . . all without any deduction on account of the cost of tangible property
sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes,
or any other expense whatsoever paid or accrued and without any deduction on
account of losses.

See also Wash. Imaging Servs., 171 Wn.2d at 555-56. The “value proceeding or accruing” is “the