Bill > HB2083

This bill modernizes Washington state's tax code by extending retail sales tax to select services, removing certain digital service tax exemptions, updating taxes on nicotine products, and requiring certain large businesses to make a one-time prepayment of state sales tax collections. Specifically, the bill extends sales tax to new service categories including information technology consulting, technical support, custom website development, security services, temporary staffing services, and advertising services. It also expands the definition of tobacco products to include nicotine-based products, whether derived from tobacco or created synthetically. Additionally, the bill mandates that monthly filers with $3 million or more in taxable retail sales during calendar year 2026 must remit an 80% prepayment of June 2026's state sales tax collection by June 25, 2027. The legislature argues that these changes are necessary to modernize the tax code to reflect the shift from a goods-based to a service-based economy, ensure fair taxation across emerging product categories, and generate revenue to support public schools, healthcare, and social services. The bill includes staggered effective dates between October 2025 and January 2027 for different provisions.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2083&Year=2025&Initiative=false