The Washington state appellate court has overturned a 2007 Spokane County Superior Court summary judgment against Spokane's Camp Automotive Inc. and its Medford, Ore.-based parent, Lithia Motors Inc., that found Camp illegally added a state business-and-occupation tax surcharge to the purchase price of a couple's vehicle.

Marcia and Theron Johnson claimed in their suit that Camp Automotive violated state law and the state's Consumer Protection Act by adding the B&O tax on top of the negotiated, final vehicle price. The Spokane-based Court of Appeals panel ruled, though, that unopposed evidence showed the B&O tax was disclosed to the couple and negotiated into their purchase price, contrary to the allegations. Based on that finding, it said it wasn't convinced Camp engaged in a deceptive or unfair practice amounting to a Consumer Protection Act violation. It reversed the judgment by Judge Kathleen M. O'Connor and remanded the matter back to Superior Court for entry of a summary dismissal order in Camp's favor.

The Johnsons' attorney, Brian S. Sheldon, of Phillabaum, Ledlin, Matthews & Sheldon PLLC, of Spokane, says he's reviewing the decision and doesn't know yet if his clients will appeal it. "We haven't had time to fully digest it yet," he says.

Camp Automotive's Spokane attorney, Kevin Curtis, of Winston & Cashatt Lawyers PS, of Spokane, couldn't be reached for comment.

Generally B&O taxes are paid by a business rather than the customer, but the appeals court—citing a recent Washington state Supreme Court ruling—noted that it's not illegal to have customers pay the tax if they are made aware of it during the price negotiating process.

The Supreme Court made that legal distinction as part of its finding in a similar case involving Appleway Chevrolet Inc., of Spokane Valley. It held that a car dealership "may itemize the tax if it is part of the final purchase price," but ruled that Appleway violated the law by collecting a B&O tax from car purchaser Herb Nelson that was in addition to the agreed sale price.

The Camp case differed from the Nelson case, the appeals court said, in that the salesman used a "writeback," listing a B&O tax of $136.75, "to facilitate" the negotiations and arrive at the final agreement. The writeback, initialed by the Johnsons, states in capital letters, "I understand the above figures have been negotiated," thus making that charge part of the negotiated price, the court said.