MYNORTHWEST POLITICS

New sales tax targeting business services looms over WA

Sep 2, 2025, 8:48 AM

sales tax business wa...

Bob Ferguson speaks at a press conference outside the Washington Capitol. (Photo courtesy of KIRO 7)

(Photo courtesy of KIRO 7)

Starting Oct. 1, some Washington businesses will have to charge new sales taxes.

Engrossed Substitute Senate Bill (ESSB) 5814, which adds new business activities to the definition of retail sales, was passed by the Washington State Legislature earlier this year. According to The Center Square, the retail sales tax list now includes services such as advertising, live presentations, and custom website development.

Services including information technology, custom website development, investigation, security, armored car services, temporary staffing, advertising, and custom software sales are subject to the new tax.

Republicans argued the law is vague and could raise costs for families.

“Not only is it going to be a significant new tax on a whole host of things, but it’s so poorly defined … food, gas, housing, childcare, healthcare, it’s all getting taxed,” Sen. John Braun, R-Centralia, told The Center Square. “It’s all going to accrue to a higher cost of living for Washingtonians across the state. And that’s bad, that’s really bad.”

On the other side of the aisle, Democrats argued the hikes are needed to keep up with inflation and fund services.

“Whether it’s difficult reductions or difficult revenue, not a single cut or a single tax increase is something that is easy or that doesn’t impact somebody or that we take lightly,” Rep. Joe Fitzgibbon, D-West Seattle, told The Center Square. “I really think we did the best we could, given the hand that we were dealt.”

The Department of Revenue plans to release guidance this month. More information can be found here.

MyNorthwest Politics

seattle police (2)...

James Lynch

Seattle mayor says city is ‘absolutely aiming’ to recover $13.1 million in police overpayments

Seattle Mayor Katie Wilson said the city is seeking to recover about $13.1 million mistakenly paid to Seattle police employees in retroactive wages.

3 hours ago

grocery katie wilson...

James Lynch

Seattle Mayor Wilson signs first-of-its-kind grocery pricing law

A shopper’s browsing history, social media activity, or personal profile should not determine the price they pay for groceries.

7 hours ago

Mason County sheriff...

Gee Scott and Ursula Reutin Show

‘Do they want them to have free speech?’: Mason County sheriff argues oversight law threatens elected sheriffs’ rights

The Mason County sheriff said a state law concerning sheriffs’ professional standards gives a commission too much power over elected officials.

7 hours ago

millionaire's tax I-645...

John Curley Show

Curley urges listeners to vote to repeal ‘millionaire’s tax’: ‘They’re not going to keep it just for millionaires’

Washington voters will decide Nov. 3 whether to repeal the state's new 9.9% tax on household income above $1 million, and KIRO host John Curley is urging listeners to vote yes.

12 hours ago

millionaires' tax (1)...

John Curley Show

‘It’s incredibly out of touch’: Senator rejects expanding WA’s millionaires’ tax to $250K earners

Washington Sen. Jesse Salomon defended his support for the millionaires' tax but pushed back against his Democratic opponent.

3 days ago

Kent Loux seattle police officers guild president spog...

Gee Scott and Ursula Reutin Show

‘We’ve had two years of inaccuracies’: Police union president wants payroll answers before Seattle recoups overpayments

Seattle’s police union wants the city to resolve what it describes as two years of payroll inaccuracies, including underpayments.

3 days ago

New sales tax targeting business services looms over WA