Comcast sues Washington to block law imposing sales tax on advertising

Major cable and internet provider Comcast is suing Washington and the Department of Revenue over a new state law.

A bill that requires businesses to collect sales tax on advertising services takes effect Oct. 1 in Washington. Comcast argues the law violates federal law by not applying the tax evenly to advertising services, The Seattle Times reported Monday.

The cable company also stated that parts of the law go against the Internet Tax Freedom Act, which protects internet services from being unfairly taxed.

In Washington’s law, advertising services include all digital and non-digital services related to the creation, preparation, production, or dissemination of advertisements. However, advertising services do not include web hosting services and domain name registration, newspapers, printing, publishing, or broadcasting.

The law aims to fill the state’s budget deficit, but if Comcast wins, officials would be forced to make major changes, according to The Seattle Times.

A Comcast spokesperson told the media outlet the lawsuit outlines the company’s concerns and declined to comment further.

Comcast pays over $9 million in fines

In 2019, Comcast was ordered to pay nearly $9.1 million for charging customers in Washington without consent.

A King County Superior Court judge ruled the cable and internet provider violated the state’s consumer protection laws upwards of 445,000 times. As a result, the company was forced to pay fines, along with restitution for tens of thousands of customers.

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