Sec Form 3 Filing - PINNEY ALESIA LEE @ AVALARA INC - 2018-06-14

FORM 3 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person PINNEY ALESIA LEE 2. Issuer Name and Ticker or Trading Symbol AVALARA INC [ AVLR] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) See Remarks (Last) (First) (Middle) 255 SOUTH KING ST., SUITE 1800 3. Date of Earliest Transaction (MM/DD/YY) 06/14/2018 (Street) SEATTLE, WA98104 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 315 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Option (right to buy) $ 5.18 ( 1 ) 05/22/2023 Common Stock 100,000 D Stock Option (right to buy) $ 8.04 ( 2 ) 02/25/2024 Common Stock 87,500 D Stock Option (right to buy) $ 12.34 ( 3 ) 06/16/2026 Common Stock 56,836 D Stock Option (right to buy) $ 13.84 ( 4 ) 02/09/2027 Common Stock 56,899 D Stock Option (right to buy) $ 16.6 ( 5 ) 01/23/2028 Common Stock 44,717 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other PINNEY ALESIA LEE 255 SOUTH KING ST., SUITE 1800 SEATTLE, WA98104 See Remarks Signatures /s/ Alesia L. Pinney 06/14/2018 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The option became fully vested and exercisable on April 29, 2017. ( 2 )The option became fully vested and exercisable on January 1, 2018. ( 3 )The option vested and became exercisable as to 25% of the total shares on May 5, 2017, and 1/48th of the total shares vest and become exercisable monthly thereafter such that the option is fully vested and exercisable on May 5, 2020. ( 4 )The option vested and became exercisable as to 25% of the total shares on January 1, 2018, and 1/48th of the total shares vest and become exercisable monthly thereafter such that the option is fully vested and exercisable on January 1, 2021. ( 5 )The option vests and becomes exercisable as to 25% of the total shares on January 1, 2019, and 1/48th of the total shares vest and become exercisable monthly thereafter such that the option is fully vested and exercisable on January 1, 2022.

Remarks: Executive Vice President, General Counsel, and SecretaryExhibit 24 power of attorney filed herewith.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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