Washington Supreme Court Rules Tax on Federally Subsidized Wireless Services Unconstitutional

• Washington Supreme Court ruled that a tax on federally subsidized wireless services violates the Supremacy Clause
• The tax imposition on reimbursement funds received through a federal program was found to violate intergovernmental tax immunity
• The Court reversed a Washington Court of Appeals opinion in favor of a telecommunication company
• The transactions involving a nonprofit appointed to administer the federal program were deemed non-taxable
• The intermediary nonprofit was created to effect the federal government’s telecom policy objectives

Source: www2.deloitte.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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