PSPINC CEO Kenichi Uchikura's Blog

Starting October 1, 2025, the State of Washington will begin requiring businesses like ours to charge sales tax on services such as web hosting, web development, and other digital services.

 

Up until now, these were considered “non-taxable services” under Washington State law, meaning they were not subject to sales tax. This change effectively treats these services the same way as physical goods when it comes to taxation.

 

What’s even more concerning is that this decision was made without a public vote. There was no direct input from the people of Washington — the very individuals and businesses who will be impacted. Instead, it was pushed through at the state level, adding a new cost burden to both service providers and customers.

 

For small businesses, startups, and organizations that rely on affordable web services, this means higher costs starting this fall. For providers like us, it also means the added responsibility of collecting and remitting sales tax on services that have never been taxed before.

 

While the state sees this as a way to increase revenue, for many in the tech and service industries, it feels like yet another example of policy changes made without meaningful public discussion or consent.

 

https://en.bloguru.com/ken/536819/sales-tax-on-services