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HOMESTREET, INC. v. STATE, DEPT. OF REVENUE

No. 80544-0.

210 P.3d 297 (2009)

HOMESTREET, INC., Homestreet Capital Corporation, and Homestreet Bank, Petitioners, v. STATE of Washington, DEPARTMENT OF REVENUE, Respondent.

Supreme Court of Washington, En Banc.

Decided June 18, 2009.

Attorney(s) appearing for the Case

Robert Lee Mahon, III, Scott M. Edwards, Gregg D. Barton, Perkins Coie LLP, Seattle, WA, for Petitioners.

Donald F. Cofer, Attorney General's Office, Olympia, WA, for Respondent.

SANDERS, J.

¶ 1 HomeStreet, Inc., is a residential mortgage lender that services loans it sells or securitizes1 to secondary lenders. It received tax deductions for the interest retained from these loans under RCW 82.04.4292 until the Department of Revenue (DOR) issued an order requiring HomeStreet, Inc., to pay business and occupation (B & O) taxes. HomeStreet, Inc., paid the taxes but then sued DOR for a refund. The trial court...

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