By CARLEEN JOHNSON | THE CENTER SQUARE
A slew of Washington businesses will be subject to new retail sales taxes, which will be passed onto consumers Oct. 1.
The 2025 Washington State Legislature passed Engrossed Substitute Senate Bill (ESSB) 5814, which added new business activities to the definition of retail sales.
According to the Washington Department of Revenue, new business activities impacted by the tax include advertising services, live presentations, information technology services, custom website development services and more.
“Not only is it going to be a significant new tax on a whole host of things, but it’s so poorly defined….you know, 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.”
In an Aug 22 commentary, Braun wrote, “The sales-tax hike isn’t the largest of the tax increases that will hit when October arrives. That title belongs to the jump in the business-and-occupation tax rate, which is expected to take another $5.6 billion from Washington employers over four years.”
Braun noted the Washington DOR typically has months or longer to spell out exactly how new taxes will impact businesses. This year, majority Democrats rushed through major tax hikes in the final days of the 2025 legislative session, giving the department little time to provide details.
“Normally what you’d see is the Department of Revenue going through a formal rulemaking process with input from tax professionals saying, ‘OK, what about this, and what about this? How do I give advice to my clients on this to make sure that they collect it?’” said Braun.
Braun said the tax on “presentations” leaves a lot of room for interpretation.
“That could be entertainment. It could be education. It could be a safety brief or driver training. All that stuff under this broad law that could be taxed,” said Braun.
On it’s website, DOR noted it is devoting significant resources to developing and publishing guidance prior to the effective date of Oct.1, 2025 including Interim Guidance Statements (IGSs) to be published in September for advertising services, custom software, temporary staffing businesses and more.
“Not only is it going to be a significant new tax on a whole host of things, but it’s so poorly defined….you know, 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.”
In an Aug 22 commentary, Braun wrote, “The sales-tax hike isn’t the largest of the tax increases that will hit when October arrives. That title belongs to the jump in the business-and-occupation tax rate, which is expected to take another $5.6 billion from Washington employers over four years.”
Braun noted the Washington DOR typically has months or longer to spell out exactly how new taxes will impact businesses. This year, majority Democrats rushed through major tax hikes in the final days of the 2025 legislative session, giving the department little time to provide details.
“Normally what you’d see is the Department of Revenue going through a formal rulemaking process with input from tax professionals saying, ‘OK, what about this, and what about this? How do I give advice to my clients on this to make sure that they collect it?’” said Braun.
Braun said the tax on “presentations” leaves a lot of room for interpretation.
“That could be entertainment. It could be education. It could be a safety brief or driver training. All that stuff under this broad law that could be taxed,” said Braun.
On it’s website, DOR noted it is devoting significant resources to developing and publishing guidance prior to the effective date of Oct.1, 2025 including Interim Guidance Statements (IGSs) to be published in September for advertising services, custom software, temporary staffing businesses and more.
Why is this story here — who cares about new taxes in Washington State unless you live in Washington State?
Because what happens in Washington State is often adopted by the Commie Liberals taking over Alaska.
You are correct. What happens in Liberal Commie states soon becomes the new “idea” for Alaska.
Right on! Then the rats start jumping ship and move up here. Then try and make it like the shyt hole they just came from!
It’s a warning of things to come.
If you order something that won’t ship to Alaska but have to have it sent to the barge in Seattle you will likely pay Washinton sales tax. That’s why we care.
Most commodities are transported through to alaska
It was just a matter of time Washington was going to be the next California
It’s easy to see what’s going on. WA state wants to go full communism. Eliminate small business with huge wage requirements and now even larger B & O taxes. It will be cost prohibitive to hire employees. This will also chase away large businesses creating more government dependence.
Leftists: “We want your money, and we want it NOW!”
OK Leftists on MRAK. You were all so ready, willing, and able to vilify President Trump over his proposed tariffs and how they were going to destroy the economy.
Let’s see you try to defend this from the leftists WA legislature.
Now Whimpey, the Mutt can start longing up for all those social programs he wants to rip us,off to fund
This is why any new or increased tax has to be opposed. Government will always dig deeper into your pocket to fund their bad ideas. A suggested tax will usually be presented as either minor or aimed at someone else but once the legal infrastructure is in place the tax will inevitably be increased and expanded. America at every level, federal, state and local, needs a tax revolt.
Taxation with representation. Question is who is being represented because it sure is not the common citizen of Washington state.
Epstein! Thank you for your attention to this matter!!!!!
Just a grammar note: Paragraph 7 and the last paragraph, “On it’s website” should be “On its website.”
Sounds like a fun place to live.
Remember when hippies didn’t want to get ripped off by “the man”
Now they vote for ‘the man’ to rip people off, and they could care less.
Now they ARE ‘the man’.
In response to their ever-expanding tax scheme, just do what the Left does on a daily basis: change the “meaning” of things. Just state that your business is something other than the type that falls under the new tax regime. Who are they to contradict you? It’s YOUR truth, is it not?
Yesterday my business was website development; today the “website development” is driftwood sculpture exhibition for donations, and if you claim otherwise you are fascist race-discriminating violent hate-crime perpetrating Nazi.
Move the Southern terminal of the Alaska State Ferry system to Hyder and I will guarantee you any stops in the State of Washington will be related to medical and it will entail a ‘Steak and Egg” Med-Flight. Other than that, Hello Montana,Utah, and Idaho.
The problem is that 80% of the products Alaskans consume come from or through Washington state. We are going to get gouged and good brace yourselves.
Imagine if you get up and give a telk to a group about how Sebastian is a trans gender you will get taxed.
The $12-16B budget deficit will continue to grow as productive people and businesses flee while entitlements increase.
Just another nail in their coffin.
I recall adults using the phrase “the last person leaving Seattle please turn off the lights” and now I have the meaning.
I lived in Washington State in the ’70’s when the sales tax was first implemented. Then Governor Dixie Ray promised it would never be on food. Guess what? It didn’t take long before food was being taxed.