A property management company could not obtain a refund of Washington business and occupation (B&O) tax for wages paid to its onsite employees because evidence supported the taxpayer's status as the employer. The property management agreement (PMA) explicitly states that the onsite employees are deemed to be employees of the taxpayer and that the owner "will not interfere with or direct any of" its employees. Furthermore, the taxpayer was the employer of record, withholding applicable taxes from onsite employee paychecks.

In addition, Rule 111 does not apply as the taxpayer cannot establish that it is an agent of the owner. The taxpayer controls all aspects of the employment relationship with onsite employees, including hiring, supervising, provision of benefits, and providing compensation. The PMA further disclaims any agency relationship between the taxpayer and owners. Though the taxpayer claimed that the onsite employee wages were imputed and were not part of the value proceeding from its property management services, use of funds from operating accounts to satisfy the taxpayer's obligation to pay its own employees was consideration "actually received or accrued." Apartment Management Consultants LLC v. Department of Revenue, The Court of Appeals of Washington, Division Two, No. 60254-7-II, November 12, 2025