Services newly subject to retail sales tax

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 on 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.

This page provides basic information on the services that are now subject to sales tax. The department will publish additional guidance in the form of Special Notices, Frequently Asked Questions, Interim Guidance Statements (IGS), Excise Tax Advisories, and Rulemaking.

We will update this page with links to the additional guidance as it’s published. You can check back frequently, or you can sign up for notifications to get the latest updates.

Your voice matters

The department welcomes your questions and feedback, including areas where you believe guidance may be needed. Your questions and feedback will help us update guidance on a timelier basis.

You can submit questions and comments to Rulings@dor.wa.gov. We will answer your questions as quickly as possible. However, since this is new legislation, it may take us longer than our standard 10-days. You do not have to tell us who you are if you are merely providing comments or feedback and would like general information.

There will also be opportunities to participate in stakeholder meetings. We will publish those opportunities to this page as they are scheduled.

Information technology services

Information technology training services, technical support, and other services include, but are not limited to:

• Assisting with network operations and support.
• Help desk services.
• In-person training related to hardware or software.
• Network system support services.
• Data entry services.
• Data processing services.

More information

Coming soon.

Custom website development services

Website development service means the design, development, and support of a website provided by a website developer to a customer.

More information

Coming soon.

Investigation, security, and armored car services

Investigation, security, security monitoring, and armored car services include, but are not limited to:

• Background checks.
• Security guard and patrol services.
• Personal and event security.
• Armored car transportation of cash and valuables.
• Security system services and monitoring.

Note: This does not include locksmith services.

More information

Coming soon.

Temporary staffing services

Temporary staffing service means providing workers to other businesses for limited periods of time to supplement their workforce and fill employment vacancies on a contract or a fee basis.

Note: This does not include providing workers to hospitals licensed under chapter 24 70.41 or 71.12 RCW.

More information

Coming soon.

Advertising services

Advertising services means all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements including, but not limited to:

• Layout, art direction, graphic design, mechanical preparation, production supervision, placement, referrals, acquisition of advertising space, and rendering advice concerning the best methods of advertising products or services.
• Online referrals, search engine marketing, and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign.

Advertising services do not include:

• Web hosting services and domain name registration.
• Services rendered in respect to the following:
  • Newspapers as defined in RCW 82.04.214.
  • Printing or publishing under RCW 82.04.280.
  • Radio and television broadcasting" within this state as defined in RCW 82.04 (section 1, chapter 9, Laws of 2025).
• Services rendered in respect to out-of-home advertising, including:
  • Billboard advertising.
  • Street furniture advertising.
  • Transit advertising.
  • Place-based advertising, such as in-store display advertising or point-of-sale advertising.
  • Dynamic or static signage at live events.
  • Naming rights.
  • Fixed signage advertising.
  • Note: Does not include direct mail.

More information

Coming soon.

Live presentations

Live presentations include, but are not limited to, lectures, seminars, workshops, or courses where participants attend either in person or via the Internet or telecommunications equipment that allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time.

More information

RCW 82.04.050(3)(l) "Sale at retail," "retail sale."

Interim Statement regarding live presentations for schools and institutions of higher education

In process or planned guidance

Coming soon.

Sales of custom software and customization of prewritten software

Retail sale now includes sales of custom software and customization of prewritten computer software to a consumer, regardless of the method of delivery to the end user. This includes:

• Charges to consumers for the right to access and use custom software, and customization of prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis.
• The right to access and use custom software, and customization of prewritten computer software to perform data processing.

More information

Coming soon.