Heads up, Washington service pros
ESSB 5814 hits on October 1, 2025. Retail sales tax and the retailing B&O rate start applying to agencies, studios, dev shops, and consultants overnight.
ποΈπ₯Washington New Tax Dumpster Fire Kit
Information Technology
Managed IT, help desk, backups, and troubleshooting shops fall here.
Advertising & Marketing
Strategy, social, creative, media buying, and influencer retainers count.
Custom Websites
Design sprints, headless builds, e-commerce launches, and maintenance retainers.
Custom Software
Custom tools, integrations, scoped builds, and software support agreements.
Architecture & Engineering
Architecture, engineering, and BIM teams layering in portals or AI extras.
Temporary Staffing
Temp staffing, agency markups, fractional benches, and contractor pools.
Security & Investigation
Guarding, investigations, armored transport, and security system ops.
Professional Services
Law, accounting, architecture, and consulting shops adding portals or AI.
Data Processing & AI
Payroll, OCR, claims analytics, and AI data crunching live here.
Existing Contracts
Contracts signed before October 1, 2025 may qualify for transitional relief.
Before You Update Your Invoice Templateβ¦
Effective Date
October 1, 2025 β get systems ready before invoices go out.
Whatβs Changing
Retail sales tax plus retailing B&O classification now hits these services.
Contract Trap
Existing contracts may be grandfathered, but modifications can void the relief.
Source material: Washington Department of Revenue interim guidance statements for services affected by ESSB 5814 including IT services, advertising services, custom websites, custom software, live presentations, temporary staffing, investigation/security services, and contracts prior to October 1, 2025.
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