Simpson Investment Co. v. Department of Revenue

— This dispute between Simpson Investment Company (Simpson) and the State Department of Revenue (Department) presents the question of whether Simpson, a holding corporation for multiple subsidiaries, is a “financial business” for purposes of RCW 82.04.4281 (section 4281). Section 4281 provides a Business and Occupational (B&O) tax deduction for the investment income of all persons not “engaging in banking, loan, security, or other financial businesses.” RCW 82.04.4281. The Department assessed B&O taxes against Simpson, claiming it was not entitled to deduct its investment income because it is…