Superior Energy Services, LLC, Respondent v. State of WA, Dept. of Revenue
- Superior Energy Services (SES) contracted with the Shell Oil Company for the construction and design of a subsea oil spill containment system. After an audit of SES, the Department of Revenue assessed over $15 million in use taxes and over $5 million in penalties. SES appealed the taxes and penalties to the Department of Revenue and then to the Board of Tax Appeals, both of which affirmed. SES then appealed to the Whatcom County Superior Court, which reversed the Board’s decision. The Department of Revenue appeals the superior court’s decision, arguing that SES owes taxes on the goods and services used to construct the containment system, because SES’s contract with Shell was not a lease, it made intervening use of the containment system, and the barge used to transport the containment system was not transport property for hire. COA # 882678. Whatcom County Superior Court # 23-2-00887-37.