SENATE BILL 5814
Passed during the 2025 Washington legislative session, Engrossed Substitute Senate Bill (ESSB 5814) added new business activities to the definition of retail sales. We continue to meet with stakeholders in Olympia to better understand the bill and its implications on creative businesses in Washington State.
What is ESSB 5814?
From the Department of Revenue’s website, Engrossed Substitute Senate Bill (ESSB) 5814 added new business activities to the definition of retail sales. This means sellers must begin collecting sales tax on these services starting October 1, 2025:
Information technology services.
Custom website development services.
Investigation, security, and armored car services.
Temporary staffing services.
Advertising services.
Live presentations.
Sales of custom software and customization of prewritten software.
Modification of digital automated services (DAS) exclusions.
We will continue to update you as we learn more. If you would like to share with us how this may impact your business, we’d love to hear from you so we can share that with legislators and other stakeholders when we meet with them.
INTERIM GUIDANCE STATEMENTS
The Department of Revenue has published a series of Interim Guidance Statements (IGSs) to clarify the upcoming retail sales tax changes effective October 1, 2025. These statements can be relied on until final or permanent guidance is issued, or the interim guidance is canceled.
The Department of Revenue is accepting feedback, including areas where guidance may be needed. Questions and comments can be sent to Rulings@dor.wa.gov.
NAVIGATING SB 5814 WEBINAR RECORDING
ArtsWA (Washington State Arts Commission), Inspire Washington, Washington Festivals and Events, and the Washington State Department of Revenue held a “Navigating SB 5814: New Sales Tax Changes for the Creative Sector” webinar on September 23, 2025. You can find the recording to this webinar below.