One month from Labor Day, a slew of Washington businesses will be subject to new retail sales taxes, which will be passed onto consumers.
The 2025 Washington State Legislature passed Engrossed Substitute Senate Bill (ESSB) 5814, which added new business activities to the definition of retail sales.
Those new taxes will be collected starting Oct. 1.
According to the Washington Department of Revenue, new business activities impacted by the tax include advertising services, live presentations, information technology services, custom website development services and more.
“Not only is it going to be a significant new tax on a whole host of things, but it’s so poorly defined….you know, food, gas, housing, childcare, healthcare, it’s all getting taxed,” Sen. John Braun, R-Centralia, told The Center Square. “It’s all going to accrue to a higher cost of living for Washingtonians across the state. And that’s bad, that’s really bad.”
In an Aug 22 commentary, Braun wrote, “The sales-tax hike isn’t the largest of the tax increases that will hit when October arrives. That title belongs to the jump in the business-and-occupation tax rate, which is expected to take another $5.6 billion from Washington employers over four years.”
Braun noted the Washington DOR typically has months or longer to spell out exactly how new taxes will impact businesses. This year, majority Democrats rushed through major tax hikes in the final days of the 2025 legislative session, giving the department little time to provide details.
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Author: Ray Hilbrich
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