B&O taxes are imposed on the gross income of a business for the privilege of engaging in business activities in Washington.
IN THE SUPREME COURT OF THE STATE OF WASHINGTON
WASHINGTON IMAGING SERVICES,)LLC,)No. 84101-2)Respondent,))v.)En Banc)WASHINGTON STATE DEPARTMENT)OF REVENUE,))Petitioner.) Filed May 19, 2011 _______________________________________)MADSEN, C.J.—This is abusiness and occupation(B&O)tax case.
Thetaxpayer, Washington Imaging Services, is a medical imaging company that retainsOverlake Imaging Associates, a professional corporation, as an independent contractor whose radiologists interpret the images that Washington Imaginggenerates. After patients and their insurers pay Washington Imagingfor the imaging services, WashingtonImagingpays Overlake a percentage of net receipts pursuant to the terms of contracts between Washington Imagingand Overlake. Although the patients are aware that the