Scott M. Edwards

Partner

Seattle

Tel 206.223.6286
Fax 206.223.7107

For nearly 30 years, Scott Edwards has been representing clients on state and local tax matters. His experience spans the full business and tax spectrum, ranging from tax planning and transactional matters to tax controversy and litigation.

Scott helps clients minimize the tax costs of doing business. While focusing on gross receipts taxes—particularly Washington's B&O tax, and sales and use taxes—his practice covers the full range of state and local taxes.

Services

Experience

Representative Matters

Assurance Wireless USA, LP v. Washington Department of Revenue
Represented taxpayer challenging assessment of sales tax on amounts received under the federal “Lifeline” program, which provides free telephone service to low-income persons. The Washington Supreme Court held that the federal government’s payments to Lifeline providers are preempted from sales tax under the Supremacy Clause of the U.S. Constitution.
Quinn v. Washington Department of Revenue
Represented plaintiffs challenging Washington state's capital gains tax. The Superior Court held that the tax is an income tax that violates the state Constitution's Uniformity Clause. The Washington Supreme Court avoided the state constitutional issue by re-characterizing the tax as an excise tax on the transactions that generate capital gain, even though many of the individuals on whom the tax is imposed have no control over where, whether, or when such transactions may occur. Although, as an excise tax on transactions, the tax violates the U.S. Constitution by taxing gain received by Washington residents and domiciliaries derived from transactions that occur outside the state's boundaries, the U.S. Supreme Court declined certiorari.
Kunath v. City of Seattle
Represented plaintiffs challenging Seattle's income tax. The trial court ruled that Seattle does not have statutory authority to impose an income tax without reaching constitutional issues. The Court of Appeals affirmed on alternative grounds holding that the ordinance violated the Washington constitution.

Seed Intellectual Property Group LLP v. Washington Department of Revenue
Represented taxpayer regarding proper apportionment of state B&O tax. The court ruled in taxpayer’s favor regarding the proper apportionment method. The Department did not appeal.
AT&T Services, Inc. v. Washington Department of Revenue
Represented taxpayer regarding proper apportionment of state B&O tax. The court ruled in taxpayer’s favor. The Department issued an excise tax advisory acknowledging the court’s ruling for all tax periods before a statutory amendment.
LendingTree, LLC v. Washington Department of Revenue
Represented taxpayer regarding proper apportionment of state B&O tax under single factor apportionment statute. The Court of Appeals ruled in taxpayer's favor regarding the proper apportionment method.
KMS Financial Services, Inc. v. City of Seattle (KMS II)
Represented taxpayer challenging city tax assessment on apportionment grounds. The Court of Appeals held that the assessment was not fairly apportioned.
New Cingular Wireless PCS, LLC v. City of Clyde Hill
Represented taxpayer in matter addressing the right to challenge a municipal assessment through a declaratory judgment proceeding. The court upheld the taxpayer's right to bring a declaratory judgment action.
Agrilink Foods, Inc. v. Washington Department of Revenue
Represented taxpayer in a matter addressing the B&O tax classification of chili manufacturing. Favorable Supreme Court ruling reaffirmed principle that ambiguous tax imposition statutes must be construed in favor of taxpayers.
HomeStreet, Inc. v. Washington Department of Revenue
Represented taxpayer in a matter addressing the deductibility of interest income derived from residential first mortgage loans that were securitized on a servicing retained basis. The Legislature subsequently codified the Supreme Court's favorable ruling.
Samis Land Co. v. City of Soap Lake
Represented landowner challenging local assessment as an unconstitutional property tax. In striking down assessment Supreme Court reaffirmed test for distinguishing taxes subject to constitutional limitations from fees limited only by a municipality's general police powers.
Gabelein v. Diking District No. 1 of Island County
Represented Diking District in challenge to method by which District developed its benefit assessment roll.
InterCambio Express v. Department of Revenue
Represented taxpayer in matter addressing how receipts from money transfer services are sourced. Department subsequently adopted trial court's ruling for taxpayer in a published excise tax advisory.
Avanade, Inc. v. City of Seattle
Represented taxpayer in challenge to unfairly apportioned city tax.
KMS Financial Servs., Inc. v. City of Seattle (KMS I)
Represented taxpayer in challenge to unfairly apportioned city tax.
Corporate Express Office Products, Inc. v. City of Seattle
Represented taxpayer in city's appeal of an administrative ruling granting taxpayer a refund.
City of Tacoma v. Mary Kay, Inc.
Represented taxpayer in City's appeal of an administrative ruling granting taxpayer a refund.
Shell Oil Co. v. Washington Department of Revenue
Represented Shell Oil Co. in appeal regarding proper valuation of barter transactions.
Estate of Kurt Cobain v. Washington Department of Revenue

Successful refund suit challenging whether estate was engaged in business.

Professional Highlights

Professional Activities

American Bar Association, Section of Taxation, State and Local Tax Committee; Co-chair; Miscellaneous Taxes (Including Gross Receipts Taxes) Subcommittee

Recognition & Accomplishments

Chambers USA, Tax, 2020-2024

The Best Lawyers in America, Tax Law, 2012-2025; Litigation and Controversy – Tax, 2024-2025

Thomson Reuters, "Washington Super Lawyer," Tax, 2012-2024

Speaking Engagements

"Apportionment: When does the Little Apportionment Piggie Go to the Market?" Washington State Tax Conference, July 13, 2023

"Top 10 Cases – Income Tax," Council On State Taxation, October 26, 2022

Board Memberships & Community Service

American Red Cross, Western Washington Region, Board of the Directors, 2006-2015; past Chair, Finance Committee; past Chair; Treasurer

Association of Washington Business, Legal Affairs Council; Tax and Fiscal Policy Committee

Washington Research Council, Executive Committee, 2012-Present; Chair, 2017

St. Cecilia Parish Finance Council, Chair

Related Insights

Credentials

Education

University of Washington School of Law (J.D., with honors, 1991)

Princeton University (B.A., magna cum laude, 1988)

Admissions

Washington

U.S. Supreme Court

U.S. District Court for the Western District of Washington

U.S. Court of Appeals for the Third Circuit

U.S. District Court for the District of New Jersey

U.S. Court of International Trade