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WashingtonSB 58142025-2026 Regular SessionSenateWALLET

Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection.

Sponsored By: Noel Frame (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 4 costs, 0 mixed.

Sales tax exclusions for affiliated businesses

Beginning October 1, 2025, specified services sold between affiliated businesses are excluded from digital-product retail sales tax rules. Covered human-effort services must mainly involve seller work that began after the customer requested it. Covered live presentations must allow participants and presenters to exchange information in real time. The advertising exclusion does not cover web hosting or domain registration. Covered data processing must mainly automate work on customer-supplied data for an organization to extract or convert information.

Sales tax on custom software purchases

Beginning October 1, 2025, Washington taxes custom software and changes to ready-made software. Tax also applies to access and use charges when the seller or another party keeps possession of the software. Covered charges include payments per use, user, or license, subscriptions, and other billing methods.

Sales tax on more recreation fees

Beginning October 1, 2025, Washington taxes covered fees for golf, amusement parks, bowling, fishing, guided hunting, swimming, go-karts, and playgrounds. Related equipment charges and some instruction charges are also covered. Exclusions include golf instruction, swimming lessons and competitions, and certain other competitive events.

Tobacco tax covers more nicotine products

Beginning January 1, 2026, Washington's tobacco-product tax covers products containing tobacco or nicotine, including synthetic nicotine. Products must be meant for people to consume, place in the mouth or nose, or absorb into the body. This definition excludes cigarettes and drugs, devices, or combination products approved for sale by the FDA as of December 31, 2024. Consumers may face higher prices as suppliers pass along the tax.

Sales tax on more business services

Beginning October 1, 2025, Washington taxes covered technology training and support, custom website development, investigation, security, staffing, advertising, and live presentations. Live presentations must let participants and presenters exchange information in real time. Temporary staffing covers workers supplied to businesses for limited periods, but excludes staffing for licensed hospitals. Specified newspaper, printing, publishing, broadcast, and outdoor advertising services are excluded. Specified technology, website development, security, and advertising sales between affiliated companies are also excluded.

Sponsors & Cosponsors

Sponsor

  • Noel Frame

    Democratic • Senate

Cosponsors

  • Claire Wilson

    Democratic • Senate

  • Emily Alvarado

    Democratic • Senate

  • Jamie Pedersen

    Democratic • Senate

  • Javier Valdez

    Democratic • Senate

  • T'wina Nobles

    Democratic • Senate

  • Yasmin Trudeau

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 220 • No: 219

Senate vote • 4/24/2025

Final Passage as Amended by the House

Yes: 26 • No: 22

House vote • 4/23/2025

Final Passage as Amended by the House

Yes: 50 • No: 47 • Other: 1

Senate vote • 4/19/2025

443 MacEwen Pg 6 Ln 30

Yes: 19 • No: 30

Senate vote • 4/19/2025

459 Muzzall Pg 6 Ln 30

Yes: 19 • No: 30

Senate vote • 4/19/2025

441 Cleveland Pg 22 Ln 39

Yes: 31 • No: 18

Senate vote • 4/19/2025

466 Robinson Pg 29 Ln 12

Yes: 29 • No: 20

Senate vote • 4/19/2025

3rd Reading & Final Passage

Yes: 27 • No: 22

Senate vote • 4/19/2025

452 Fortunato Pg 6 Ln 26

Yes: 19 • No: 30

Actions Timeline

  1. Effective date 7/27/2025*.

    5/20/2025Senate

  2. Chapter 422, 2025 Laws.

    5/20/2025Senate

  3. Governor signed.

    5/20/2025legislature

  4. Delivered to Governor.

    4/27/2025legislature

  5. Speaker signed.

    4/26/2025legislature

  6. President signed.

    4/25/2025legislature

  7. Passed final passage; yeas, 26; nays, 22; absent, 0; excused, 0.

    4/24/2025Senate

  8. Senate concurred in House amendments.

    4/24/2025House

  9. Rules Committee relieved of further consideration. Placed on second reading.

    4/23/2025Senate

  10. Third reading, passed; yeas, 50; nays, 47; absent, 0; excused, 1.

    4/23/2025Senate

  11. Rules suspended. Placed on Third Reading.

    4/23/2025Senate

  12. Floor amendment(s) adopted.

    4/23/2025Senate

  13. Committee amendment not adopted.

    4/23/2025Senate

  14. FIN - Executive action taken by committee.

    4/22/2025Senate

  15. Minority; without recommendation.

    4/22/2025Senate

  16. Minority; do not pass.

    4/22/2025Senate

  17. FIN - Majority; do pass with amendment(s).

    4/22/2025Senate

  18. Referred to Rules 2 Review.

    4/22/2025Senate

  19. First reading, referred to Finance.

    4/21/2025Senate

  20. Third reading, passed; yeas, 27; nays, 22; absent, 0; excused, 0.

    4/19/2025Senate

  21. Rules suspended. Placed on Third Reading.

    4/19/2025Senate

  22. Floor amendment(s) adopted.

    4/19/2025Senate

  23. 1st substitute bill substituted.

    4/19/2025Senate

  24. Passed to Rules Committee for second reading.

    4/19/2025Senate

  25. Placed on second reading by Rules Committee.

    4/19/2025Senate

Bill Text

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