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 Washington State Department of Revenue’s website, Engrossed Substitute Senate Bill (ESSB) 5814 added new business activities to the definition of retail sales. As of October 1, 2025, sellers must begin collecting sales tax on these services:
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.
For more information, check out the informational flyer and awareness video created by the Department of Revenue.
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.
RESOURCES ON ESSB 5814
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The Washington State 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.
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ArtsWA (Washington State Arts Commission) and the Washington State Department of Revenue have produced a Frequently Asked Questions document that can be referred to for general guidance.
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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 September 23, 2025, to address the new bill and answer questions from community members.
The Department of Revenue held a work session with the Washington State House of Representatives Finance Committee on October 14, 2025, to provide updates on bill guidance and answer questions from committee members.