New Services Subject to Retail Sales Tax (Effective Oct. 1, 2025)
Washington State’s Engrossed Substitute Senate Bill (ESSB) 5814 expands the definition of retail sales. Beginning October 1, 2025, businesses must collect sales tax on the following newly taxed services:
Information technology services
Custom website development
Investigation, security, and armored car services
Temporary staffing
Advertising services
Live presentations
Sales and customization of custom/prewritten software
Modifications to digital automated services (DAS) exclusions
Department of Revenue Actions:
Hosting listening sessions in July
Publishing interim guidance statements (IGS) and special notices
Updating web content and sending direct messages to affected businesses
Target release of interim guidance: Early September 2025 (subject to change)
More detailed guidance will be issued over time via FAQs, Excise Tax Advisories, and formal rulemaking.