Washington – Updated Apportionment Rule for Stockbrokers and Security Houses


SALT Report 2159 – The Washington Department of Revenue amended Rule 162 which explains the B&O tax reporting responsibilities for stockbrokers and security houses.  The amendment now provides that stock brokers and security houses that are engaged in business in multiple states must apportion their income to determine their B&O tax liabilities in one of the following ways:

  • For periods on or after June 1, 2010, stockbrokers and security houses who earn income subject to B&O tax and are also taxable in another state, must apportion to the state of Washington the portion of income received from those business activities pursuant to WAC 458-20-19402, Single Factor Receipts Apportionment – Generally.
  • For periods prior to June 1, 2010 income apportionment must be by a separate accounting method or by cost apportionment.

In addition, the Rule was amended to clarify that “gross income of the business” includes the total gross income from all earnings accounts, specifically gross income from interest, gross income from commissions, gross income from trading, and gross income from any other sources.

The amendments in this rule are effective March 8, 2013.

For Further Information

Washington Department of Revenue – WAC 458-20-162


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