WA Employers: New Sales Tax on Services is Unfair and Unclear
- Greater Issaquah Chamber of Commerce
- Aug 25
- 1 min read
Gathering feedback: In July, the state Department of Revenue held 10 listening sessions and launched a survey following the fast-tracked passage of Senate Bill 5814. The law, effective Oct. 1, significantly expands the state’s sales tax, applying it to range of services including advertising, IT, custom website development and more. (For background, see AWB’s issue brief.)
Key concerns: In feedback sessions and surveys, many expressed confusion and concern over the law’s ambiguous definitions, administrative burdens, and competitive disadvantages — especially for small businesses. Read more in DOR’s report.
Temporary staffing: Employers want clear definitions (i.e. what counts as “temporary”) and the ability to deduct wages, benefits and payroll taxes.
Advertising services: Many raised concerns about economic harm to Washington state businesses. "Clients could easily hire an out-of-state contractor and avoid this tax entirely,” one survey respondent wrote.
Live presentations, IT & web services, software, and security services: Businesses want narrow definitions, educational and nonprofit exemptions, practical sourcing rules, and clear guidance.
What’s next: The department’s goal is to provide interim guidance by early September. To share additional feedback and concerns, please reach out to AWB Tax & Fiscal Policy Director Max Martin.
I love how GeoGuessr rewards curiosity. Learning how to play means exploring more, zooming into signs, and moving down the street to gather information. The more curious you are, the more accurate your guesses become.
Artists design custom icons and Geometry Dash fan art, musicians produce tracks inspired by the game’s energetic style, and level creators organize building contests that bring thousands of players together. This community-driven environment adds a layer of social interaction and inspiration, transforming the game into a platform for creativity and expression rather than just a single-player experience.
Test your geography skills in World Guesser as you guess countries, cities, and landscapes from stunning world images.
To play Escape Road well, you need sharp concentration, quick reactions, and the patience to retry until you master each tricky course.
In Among Us service providers (IT, temp staffing, ad agencies) that weren’t taxed previously must now collect and remit sales tax.