ANALYTICAL METHODS, INC. v. DEPT. OF REV.

No. 20026-1-II.

928 P.2d 1123 (1996)

84 Wash.App. 236

ANALYTICAL METHODS, INC., a Washington corporation; Biomarine Technologies, Inc., a Washington corporation; Detectnology, Inc., a Washington corporation; Ecova Corporation, a Delaware corporation; Eden Bioscience Corp., a Washington corporation; JWA Division of Emadel Enterprises, Inc., a Washington corporation; International Lubricants, Inc., a Washington corporation; Research International, Inc., a Washington corporation; Silicon Designs, Inc., a Washington corporation; Videodiscovery, Inc., a Washington corporation; and Xemet, Inc., a Washington corporation, Appellants, v. The DEPARTMENT OF REVENUE, Respondent.

Court of Appeals of Washington, Division 2.

Publication Ordered December 6, 1996.


Attorney(s) appearing for the Case

Michael Conrad Anderson, Medina, for Appellants.

Joan Margaret Marchioro, Department of Revenue, Olympia, for Respondent.


ARMSTRONG, Judge.

A federal statute requires some federal agencies to expend a small percentage of their research funds on small businesses that agree to do specified research. The Department of Revenue includes the amounts Washington businesses receive under the program as gross income in calculating Business and Occupation (B & O) taxes. Eleven small businesses that participate in the program challenge the tax on these funds, contending that the amounts received...

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