Services newly subject to retail sales tax
The 2025 Washington State Legislature passed Engrossed Substitute Senate Bill (ESSB) 5814, which added new business activities to the definition of retail sales. As a result, businesses will be required to begin collecting sales tax on the following services starting Oct. 1, 2025:
- Advertising services.
- Live presentations.
- Information technology services.
- Custom website development services.
- Investigation, security, and armored car services.
- Temporary staffing services.
- Sales of custom software and customization of prewritten software.
ESSB 5814 also removes the following exclusions from the definition of digital automated services (DAS):
- Services involving primarily human effort.
- Live presentations.
- Advertising services.
- Data processing services.
The bill also created a new exclusion to DAS for “telehealth” and “telemedicine services.”
Steps we’re taking
- Listening sessions and feedback survey (now concluded). View the summary report (pdf).
- Interim Guidance Statements (IGSs).
- These are faster to issue than formal guidance under the Administrative Procedures Act (APA).
- Incorporates feedback from listening sessions and the survey as appropriate.
- Later, we will convert these IGSs to APA guidance.
- Advertising Services. - Completed
- Custom Software. - Completed
- Custom Website Development. - Completed
- DAS Exclusions. - Completed
- Existing Contracts. - Completed
- IT Services. - Completed
- Live Presentations. - Completed
- Security Services. - Completed
- Temporary Staffing. - Completed
- Special Notices posted to the topic links below.
- Direct messages to impacted businesses with links to the published guidance.
- Frequently asked questions (FAQs) to clarify common concerns.
- Webinars: Intro to sales tax.
- Introduction to sales tax video (32:10).
Upcoming guidance
We’ve identified the following rules and interpretive statements affected by ESSB 5814:
- WAC 458-20-15502 - Taxation of computer software.
- WAC 458-20-15503 - Digital products.
- WAC 458-20-180 - Motor carriers.
- WAC 458-20-19402 - Single factor receipts apportionment -Generally.
- WAC 458-20-218 - Advertising agencies.
- WAC 458-20-224 - Service and other business activities.
- WAC 458-20-274 - Staffing services.
- ETA 3100.2009 - Staffing Companies.
- ETA 3242.2025 - Multiple Points of Use Exemption - Software Maintenance Agreements.
- ETA 3189.2018 - Taxability of Alarm Monitoring Services.
We’re still reviewing other rules and guidance documents to see what else may need updates. Parts of existing rules or statements not affected by ESSB 5814 or the IGSs remain in effect.
Check the department’s rulemaking agenda page for updates.
If you are unsure of how the department’s rules or interim guidance impact the taxability of your business activities, you may request a letter ruling as described below.
Your voice matters
Listening sessions and feedback survey
Thank you to everyone who participated in our July listening sessions or completed the online feedback survey. Both the sessions and the survey are now concluded.
View the summary report (pdf).
This feedback will help inform our Interim Guidance Statements that will be published in September.
Stay informed
Sign up to receive updates and alerts.
Other ways to provide feedback
The department welcomes your questions and feedback, including areas where you believe guidance may be needed. Your questions and feedback will help us update guidance on a timelier basis.
You can submit questions and comments to Rulings@dor.wa.gov. We will answer your questions as quickly as possible. However, since this is new legislation, it may take us longer than our standard 10 days. You do not have to tell us who you are if you are merely providing comments or feedback and would like general information.
If you disagree with a binding ruling, in whole or in part, you may petition for a review of the binding ruling within 30 days of issuance. Click this link for more information.
Information technology servicesInformation technology training services, technical support, and other services include, but are not limited to:
- Assisting with network operations and support.
- Help desk services.
- In-person training related to hardware or software.
- Network system support services.
- Data entry services.
- Data processing services.
More information
Interim guidance statement regarding changes made by ESSB 5814 for Information Technology Services
Special notice: Information technology, website, and software development services now subject to sales tax
Custom website development servicesWebsite development service means the design, development, and support of a website provided by a website developer to a customer.
More information
Interim guidance statement regarding changes made by ESSB 5814 for custom website development services
Special notice: Information technology, website, and software development services now subject to sales tax
Investigation, security, and armored car servicesInvestigation, security, security monitoring, and armored car services include, but are not limited to:
- Background checks.
- Security guard and patrol services.
- Personal and event security.
- Armored car transportation of cash and valuables.
- Security system services and monitoring.
Note: This does not include locksmith services.
More information
Interim guidance statement regarding changes made by ESSB 5814 for investigation, security, security monitoring, and armored car services
Special Notice: Investigation, security, security monitoring, and armored car services now subject to sales tax
Temporary staffing servicesTemporary staffing service means providing workers to other businesses for limited periods of time to supplement their workforce and fill employment vacancies on a contract or a fee basis.
Note: This does not include providing workers to hospitals licensed under chapter 70.41 or 71.12 RCW.
More information
Interim guidance statement regarding changes made by ESSB 5814 for Temporary Staffing Services
Special Notice: Temporary staffing services now subject to sales tax
Advertising servicesAdvertising services means all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements including, but not limited to:
- Layout, art direction, graphic design, mechanical preparation, production supervision, placement, referrals, acquisition of advertising space, and rendering advice concerning the best methods of advertising products or services.
- Online referrals, search engine marketing, and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign.
Advertising services do not include:
- Web hosting services and domain name registration.
- Services rendered in respect to the following:
- Newspapers as defined in RCW 82.04.214.
- Printing or publishing under RCW 82.04.280.
- Radio and television broadcasting" within this state as defined in RCW 82.04 (section 1, chapter 9, Laws of 2025).
- Services rendered in respect to out-of-home advertising, including:
- Billboard advertising.
- Street furniture advertising.
- Transit advertising.
- Place-based advertising, such as in-store display advertising or point-of-sale advertising.
- Dynamic or static signage at live events.
- Naming rights.
- Fixed signage advertising.
- Note: Does not include direct mail.
More information
Interim guidance statement regarding changes made by ESSB 5814 for Advertising Services
Special notice: Advertising services
Live presentationsLive presentations include, but are not limited to, lectures, seminars, workshops, or courses where participants attend either in person or via the Internet or telecommunications equipment that allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time.
More information
Interim guidance statement regarding changes made by ESSB 5814 for live presentations
Interim Statement regarding live presentations for schools and institutions of higher education
Special Notice: Live presentations now subject to retail sales tax
Sales of custom software and customization of prewritten softwareRetail sale now includes sales of custom software and customization of prewritten computer software to a consumer, regardless of the method of delivery to the end user. This includes:
- Charges to consumers for the right to access and use custom software, and customization of prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis.
- The right to access and use custom software, and customization of prewritten computer software to perform data processing.
More information
Interim guidance statement regarding changes made by ESSB 5814 for Custom Software
Special notice: Information technology, website, and software development services now subject to sales tax
Modifications to digital automated service (DAS) exclusionsThe following changes were made to DAS exclusions:
- Removed:
- Services primarily involving human effort.
- Live presentations.
- Advertising services.
- Data processing.
- Added:
- Telehealth and telemedicine.
- Clarified that sales of the following DAS to affiliates are not considered retail sales:
- Services involving primarily human effort.
- Live presentations.
- Advertising services.
- Data processing.
More information
Interim guidance statement regarding changes made by ESSB 5814 to DAS exclusions and the definition of a “retail sale”
Special Notice: Digital automated service (DAS) exclusion for telehealth services
RCW 82.04.299(1)(f) Workforce education investment surcharge (definition of affiliate)
Link nội dung: https://itt.edu.vn/5814-2-a8800.html