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  5. ESSB 5814 Penalty Relief Program

ESSB 5814 Penalty Relief Program

As of Oct. 1, 2025, some services became subject to retail sales tax under ESSB 5814. The department recognizes these changes were challenging for many businesses to understand and follow before the law took effect.

We are offering a temporary program to waive certain penalties for businesses that voluntarily report and pay retail sales and use taxes for these services.

Important: This program only waives penalties. The tax itself and any interest still need to be paid.

What the program covers

The program waives penalties for:

  • Uncollected retail sales tax and unpaid use tax caused by ESSB 5814 changes.
  • Reporting periods from Oct. 1, 2025, through Dec. 31, 2026.

Note: The evasion, negligence, and tax avoidance penalties are not eligible for relief via this program.

Who qualifies?

You may qualify if you:

  • Owe retail sales tax or use tax because of ESSB 5814 changes.
  • Submit an application for penalty relief by Sept. 30, 2027.

For preexisting contracts with temporary sales tax relief:

  • Penalty relief starts when the contract no longer qualifies for temporary relief or on April 1, 2026, whichever comes first.
  • Relief ends on Dec. 31, 2026.

Submit your application online

All requests for penalty relief must be submitted through our online Voluntary Disclosure Application.

Please select Yes for the question, “Are you applying for penalty relief related to sales tax changes in ESSB 5814 (2025)?” You will need to enter your UBI#/Account ID# when prompted (if available).

Applications are accepted and reviewed in the order they are received.

If your business is not registered, review our Voluntary Disclosure Program to see if you qualify.

Sign and return your Penalty Relief Agreement

If we determine that you qualify for relief under this program, we will send you an agreement to sign. Return the signed agreement within 30 days of your application. If we do not receive it within 30 days, your application will not be approved.

Once we receive your signed agreement, we will sign it and return a final copy to you.

Next steps after you apply

After you submit your application and return the signed agreement, we will guide you through the following steps:

  1. We’ll contact you. An examiner will reach out with instructions and request any additional information we need to process your application.
  2. We’ll determine your tax liability. Once complete, we will prepare a tax assessment that includes the tax and interest due, along with any applicable penalties not covered by this program.
  3. You’ll review the draft assessment. We will send you a draft copy to check for accuracy before we finalize it.
  4. We’ll post the final invoice. After processing, the invoice will appear in your My DOR account.
  5. You must pay by the due date. Full payment is required by the date listed on your invoice. If payment is late or incomplete, additional interest and late-payment penalties will apply.

What happens if your application isn’t approved?

If your application is not approved, we will provide an explanation and further instructions.

How we protect your information

We will use the information you provide to determine your eligibility for this Penalty Relief Program and respond to your application. We will keep your information, as well as any Penalty Waiver Agreement, confidential as required in RCW 82.32.330. For more information, please review our Privacy Statement.