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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>I wonder if anyone has had experience recently with the DOR asserting that contributions to and earnings of ERISA regulated benefit (and retirement plans) are subject to B&O tax because SCOTUS jurisprudence no longer takes the position that ERISA preempts it from taxing such plans? I had a case that goes back almost seven years that we finally settled, but the DOR has just notified the public of their revocation of the old WTD from the 1990’s regarding ERISA preemption. My case did not involve a retirement or 401(k) plan. As we pointed out in the course of the negotiations, revocation exposes every pension, retirement, profit-sharing and benefit plan in the state to B&O tax at the “Service & Other” rate on all contributions and earnings of the plan/trust. We argued this would depress the ability to provide the benefits the plans are intended to provide. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Just curious whether the DOR is finally testing the waters with this newly discovered power. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>"Det. 91-309, 11 WTD 497 (1992). Based on authority at that time, The <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>determination concluded that the Employee Retirement Income Security Act <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>(ERISA) broadly preempted Washington’s ability to impose the business and <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>occupation tax on any contributions to, distributions from, and investment income <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>generated by ERISA qualified plans. Since the WTD was published, case law has more narrowly construed ERISA preemption provisions. The Department finds that ERISA does not preempt a law of general application like Washington’s B&O tax from applying to welfare benefit plans. ERISA may continue to pre-empt ERISA pension plans." <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><a href="https://dor.wa.gov/sites/default/files/2022-07/ETA3133.2022_FINAL.pdf?uid=63c6dddd36ef4"><span style='color:blue'>https://dor.wa.gov/sites/default/files/2022-07/ETA3133.2022_FINAL.pdf?uid=63c6dddd36ef4</span></a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Best regards</span></b><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>, <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>John J. Sullivan <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Attorney <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Lyons | Sullivan <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>10655 NE 4<sup>th</sup> Street, Suite 704 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Bellevue, WA 98004 <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>425·451·2400 tel 425-451-7385 fax <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><a href="http://www.dljslaw.com/"><span style='color:blue'>www.dljslaw.com</span></a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><b><i><u><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>Confidentiality Notice</span></u></i></b><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><i><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'>This email transmission is intended only for the addressee named above. It contains information that is privileged, confidential, or otherwise protected from use and disclosure. If you are not the intended recipient, you are hereby notified that any review, disclosure, copying, or dissemination of this transmission or the taking of any action in reliance on its contents or other use is strictly prohibited. If you have received this transmission in error, please destroy the original and notify us by telephone immediately. Thank you for your cooperation</span></i><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Helvetica",sans-serif;color:#333333'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>