Associated Grocers, Inc. v. State

— This case involves the basic question whether the business and occupation tax, RCW 82.04.270(2), allowing a tax exemption to distributors, but not to wholesalers, is invalid. We answer that it is.

The State of Washington appeals from a judgment of the Thurston County Superior Court awarding to Respondent Associated Grocers, Inc. (Associated) a refund of $9,938,529, plus interest, in business and occupation taxes. The trial court held that an exemption under RCW 82.04-.270(2) violated Associated's rights under the equal protection clause of the fourteenth amendment to the United States…