“Buy One and Get One Free” is normally a good deal, but in Washington, it’s “Buy One and Get the Second One Double Taxed”

On April 30, 2013, the Court of Appeals decided Sprint Spectrum, LP v. State of Washington, Department of Revenue, No. 42304-9-II.  The holding in this case is alarming for three reasons, one is that a retailer that markets a product “Buy one, get one free” may be required to pay use tax on the free item.  Second, if the retailer is required to pay use tax under the court’s theory, then logically, that seller must collect use tax from the consumer as well.  Third, carried to its logical extreme, some wholesalers could be facing this multiple tax too.

For more information about this case and its impact on Washington businesses, please read the full article written by Eisenhower attorney, Garry G. Fujita, linked above.