Washington State to Microsoft: why aren't you paying your taxes?

Jeff sez,

Last week, Microsoft told Seattle's KUOW: 'We pay all our tax obligations everywhere we are, properly.' Today, Microsoft Tax Dodge, a new website focused on the company's royalty tax dodge, challenged CEO Steve Ballmer today to live up to his spoken commitment to transparent business practices: 'At this point, I think it's reasonable to ask Microsoft to back up that claim with a public explanation of the company's licensing operations. In that spirit, will you tell the public how it is that Microsoft has avoided paying Washington State's B&O Royalty Tax for the past 12 years?' Washington State currently faces a projected $2.6 billion deficit. In addition to the ethical and public relations issues that crumbling bridges and overcrowded schools (Seattle recently considered making D a passing grade) present to the state's most profitable company, the compa ny also faces deeper scrutiny of the legality of its tax practice.
An Open Letter to Microsoft CEO Steve Ballmer: Quit Dodging Washington Taxes (Thanks, Jeff!)

(Image: WEB DEVELOPERS!, a Creative Commons Attribution photo from Nick, Programmerman's photostream)