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 presser 1...

Julia Dallas

‘I have a different window than they do’: Wilson responds to council criticism over Barnes’ departure as Andre Sayles named interim chief

Seattle Mayor Katie Wilson defended her decision to remove Shon Barnes as chief of the Seattle Police Department.

1 day ago

seattle police interim chief katie wilson...

Nia Bliss, KIRO 7 News

Seattle Police Officers Guild praises interim chief appointment while criticizing mayor’s actions

Seattle Mayor Katie Wilson announced the appointment of Deputy Chief Andre Sayles to the Interim Chief role effective Friday.

1 day ago

wa electricity bill PSE...

MyNorthwest Staff

Washington AG Nick Brown fights back against PSE’s proposed 29% electric, 20% gas rate hikes

Washington Attorney General Nick Brown is pushing back against proposed utility rate hikes from Puget Sound Energy (PSE).

1 day ago

Katie Wilson (3)...

Julia Dallas

‘Information could have gone out much faster’: Mayor Katie Wilson addresses 5-hour delay after Bite of Seattle shooting

Seattle Mayor Katie Wilson addressed the five-hour information delay from the city following a shooting at the Bite of Seattle on Sunday.

2 days ago

mayor city manager north plains portland resignation...

MyNorthwest Staff

Portland-area city loses mayor and interim city manager in back-to-back resignations

North Plains, a small Oregon town near Portland, lost its mayor and interim city manager this week after they resigned on consecutive days.

2 days ago

Shon Barnes (2)...

Julia Dallas

Seattle Mayor Wilson accepts letter of resignation from Police Chief Barnes as council members slam decision: ‘This is unacceptable’

Seattle City Council President Joy Hollingsworth confirmed that Seattle Mayor Katie Wilson asked Seattle Police Chief Shon Barnes to resign.

2 days ago

New sales tax targeting business services looms over WA