US EditionNew Sales Tax Targeting Business Services Looms over WA
The business-and-occupation tax rate increase will raise $5.6 billion over four years, affecting various services including advertising and custom website development.
- On Oct. 1, the Washington Department of Revenue will begin collecting new retail sales taxes, and some Washington businesses must start charging them.
- The 2025 Washington State Legislature passed Engrossed Substitute Senate Bill 5814, with majority Democrats advancing the package late this year, limiting details from the revenue department.
- The package expands taxable activities to include advertising services, live presentations, information technology services and custom website development services, while raising the business-and-occupation tax rate to increase revenue from Washington employers over four years.
- Affected businesses plan to pass new sales taxes to consumers, and the Washington Department of Revenue intends to issue guidance this month to assist implementation.
- Lawmakers on both sides argued: Republicans warned the vague law could raise living costs for Washingtonians, while Democrats defended hikes as needed to fund government services amid inflation.
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Leaning Left0Leaning Right3Center3Last UpdatedBias Distribution50% Center, 50% Right
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- 50% of the sources are Center, 50% of the sources lean Right
50% Right
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R 50%
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