Washington Telephone Co. v. State

This is an action to recover from the State of Washington $14,864.21, plus interest, the amount of public utility tax levied and paid pursuant to RCW 82.16.020. 1 The trial court entered judgment for plaintiff; the state appeals.

The sole question presented is whether the State of Washington may tax constitutionally plaintiff’s gross receipts earned by transmitting interstate communications for the United States Air Force. The amount of the tax involved is the result of a state audit covering a 4%-year period.

Plaintiff, a Washington corporation operating primarily in Whatcom County, is a…