INTERPRETIVE AND POLICY STATEMENT
The Department of Revenue has cancelled the following audit directive effective February 25, 2002.
AD 8156.2 Title insurance agents -- This document explains in part that the retailing B&O tax applies to the gross selling price to consumers by title insurance companies. This tax-reporting information is incorrect. Title insurance companies are subject to B&O tax only with respect to payment received for the title insurance they provide. See First American Title Ins. Co. v. Dep't of Rev., 98 Wn. App. 882, 991 P.2d 120 (2000), and First American Title Ins. Co. v. Dep't of Rev., 144 Wn.2d 300, 27 P.3d 604 (2001).
Questions regarding the cancellation of this directive may be directed to Alan R. Lynn, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6125, fax (360) 664-0693, Internet alanl@dor.wa.gov.
Claire Hesselholt
Policy Counsel