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

Katie Wilson (8)...

Luke Duecy

The Spin: How Seattle Mayor Katie Wilson’s team communicates after gun violence

Four deadly shootings in a little more than a month, including the Bite of Seattle shooting and three fatal shootings in Belltown, provide a backdrop for examining how Seattle Mayor Katie Wilson’s communications team handles difficult news. In this edition of “The Spin,” KIRO Newsradio reporter Luke Duecy looks at two recent examples and the […]

2 days ago

joy hollingsworth seattle...

Gee Scott and Ursula Reutin Show

‘Too many have workshopped their public safety dissertations on communities’: Seattle council president wants action, not plans

Seattle City Council President Joy Hollingsworth told "The Gee and Ursula Show" she is tired of the city treating communities like test subjects.

3 days ago

Shon Barnes (2) wilson...

Julia Dallas

Mayor Wilson’s office tells council she removed Shon Barnes to align SPD with her ‘values’

Mayor Wilson's office responded to a letter from City Councilmember Bob Kettle requesting a formal explanation for why she asked Barnes to resign.

3 days ago

downtown seattle (1)...

Julia Dallas

‘Seattle is making progress, step by step’: Mayor Wilson responds to plea from more than 30 major business leaders

More than 30 major players in Seattle's business community have signed a letter urging the city to take action on public safety.

4 days ago

...

Luke Duecy

Mayor Wilson signs Seattle’s first ‘Do Not Solicit’ list to block unwanted real estate offers citywide

Seattle homeowners will soon have a new way to stop unwanted and persistent offers to buy their homes as Mayor Katie Wilson signed an ordinance for soliciting.

4 days ago

trump state overspending...

Charlie Harger

Harger: Conservatives cheer when I call out state overspending. Will they keep that principle now that it’s Trump?

Washington doesn't have a revenue problem. It has a spending problem. We take money from the federal government, then make state taxpayers have to pick up.

4 days ago

New sales tax targeting business services looms over WA