HomeStreet, Inc. v. Department of Revenue

¶1 — HomeStreet, Inc., is a residential mortgage lender that services loans it sells or securitizes1 to secondary lenders. It received tax deductions for the interest retained from these loans under RCW 82.04.4292 until the Department of Revenue (DOR) issued an order requiring HomeStreet, Inc., to pay business and occupation (B&O) taxes. HomeStreet, Inc., paid the taxes but then sued DOR for a refund. The trial court granted DOR’s motion for summary judgment of dismissal, which was affirmed by the Court of Appeals. We now reverse the Court of Appeals and order DOR to refund the taxes to…