Washington Can Tax Remote Escrow, Insurance Services, Judges Say

Title insurance and escrow services are attributed to the state where the buyer’s property is located, not the agent’s remote office, a Washington appeals court held Tuesday, overturning a $10.9 million business and occupation tax refund.

The sales should be sourced to Washington because purchasers first receive or make use of the title company’s services in the state, Judge Bernard F. Veljacic wrote for the Washington Court of Appeals, Division II.

The decision is one in a string of recent rulings reaching business done in other states for in-state taxation after Washington in 2007 shifted its B&O tax sourcing from ...