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SPRINT SPECTRUM v. STATE, DEPT. OF REVENUE

No. 42304-9-II.

302 P.3d 1280 (2013)

SPRINT SPECTRUM, LP, Respondent/Cross Appellant, v. STATE of Washington, DEPARTMENT OF REVENUE, Appellant/Cross Respondent.

Court of Appeals of Washington, Division 2.

April 30, 2013.

Attorney(s) appearing for the Case

Heidi A. Irvin , Brett S. Durbin , Attorney Generals Office/Revenue Div., Olympia, WA, for Appellant/Cross-Respondent.

Michele G. Radosevich , Davis Wright Tremaine LLP, Seattle, WA, for Respondent/Cross-Appellant.

QUINN-BRINTNALL, J.

¶ 1 The Department of Revenue (DOR) assessed use tax on wireless phones Sprint Spectrum, LP (Sprint) had fully discounted and "sold" to customers — for $0.00 — who signed extended term wireless service agreements. Sprint successfully appealed the use tax assessment to the Board of Tax Appeals (the Board), arguing that it recovers the cost of the free phones through sales of wireless phone service (on which it collects retail...

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