Lawsuit Challenges Washington State Department of Revenue’s Assessment of Intangible Assets


A lawsuit recently filed against the Washington State Department of Revenue (DOR) has the potential to significantly affect the property taxes of utility and transportation companies assessed by DOR.  The lawsuit, brought by AT&T Mobility, claims that DOR improperly assessed property tax on its goodwill and customer relationships and employed a flawed valuation model to value other intangible personal property.  AT&T Mobility claims that these assets should be exempt as intangible personal property, and that DOR’s failure to exclude these assets from its assessments violates state statutory and constitutional provisions.

If AT&T Mobility prevails, it would require DOR to make substantial adjustments to its current assessment practices and has the potential to significantly lower taxpayers’ property taxes.

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For more information, contact James W. Minorchio.