[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6267445,"mediaKeyId","3070088-c4ac169f55fda842b0306bf11f61e66a","parentId",3070088,"title","Committee hears hours of testimony on proposed expansion of sales tax to services, digital advertising and additional cigarette tax","audioSeconds",1862,"startMs",2202000,"endMs",340000,"viewUrl","/Search/View?dp=1&key=3070088-c4ac169f55fda842b0306bf11f61e66a&start=2202&end=340","thumbnailUrl","https://assets.pipeline.soar.com/3070088-c4ac169f55fda842b0306bf11f61e66a/thumbnail_2202000.jpg","articleUrl","/articles/6267445/Washington/Committee-hears-hours-of-testimony-on-proposed-expansion-of-sales-tax-to-services-digital-advertising-and-additional-cigarette-tax","mediaUrl","https://secure.pipeline.soar.com/6267445-c4ace6deab3a06ca2174e9b6a3d424f6/orig.mp4?Expires=1770817477&Signature=Ue4DF4FyqMUxFxeAD-m9ywTYos9a8OhlpBjt87sKqC-Q6aeP7974P2QgEOCBpw3ctgASHPXUeV3bfMVd72GLjr1kNHfoe18UzMhGUJB4HtJiNUgiSb6JydjzlBACxJwihkaIrJ9PGCDzS4kfK6QOtidVQ9U0MGM4d9FBeEip7QdBOgZAXcFjC7IgKkJc9JllUGLNQz17nJYs7alhYGimZ9LvMLKbEZqODQTWGlocl-eAG2JIlnWu~rpg~4xel5bdlRnk3Se47k8dIW13R0g59yi6WZXwhQxR9OQnLI2MkGkj2yI-mlWygtKxjnMpGCIu1miag7iQdtyXnRV5r7RDVA__&Key-Pair-Id=KUT5TJCACFTXG","author","Washington Legislature","date","2025-04-21T00:00:00Z","article","A legislative committee held a public hearing April 21 on Senate Bill 58 58 14, a broad tax package that would classify additional services and certain digital products as taxable retail sales, expand the definition of tobacco products to include nicotine whether derived from tobacco or synthetic sources, raise per‑cigarette taxes and require a one‑time prepayment of state sales tax by very large monthly filers.

Christina King, staff to the committee, summarized the bill’s contents, saying customers “do not pay retail sales and use tax on most services” but that the bill would add categories including information technology consulting and training, custom website and software work, security monitoring and armored‑car services, temporary staffing, and certain advertising services. King also described an added excise on cigarettes and reiterated that the Department of Revenue may provide altered filing frequencies for small taxpayers.

The bill would also treat “digital products” and some digital automated services (DaaS) as subject to sales and the retailing business & occupation tax unless specifically excluded. King said some exclusions remain—for example, services that “primarily involve the seller’s application of human effort,” live presentations, advertising services in limited cases, and data processing services.

Why it matters: supporters say the measure modernizes an older tax code and raises revenue to avoid deep program cuts; opponents contend it will raise costs for small businesses, non‑profits and local events and risk pyramiding of taxes.

Supporters included local government and labor representatives who said expanded revenue is necessary to preserve services. Lindsay Sherman Warren, a Port Angeles city council member testifying for her city, said reform “makes sense” to maintain critical local services such as hospitals and childcare. Labor and public‑service groups — including the Washington Public Employees Association and the Washington Federation of State Employees — urged passage to prevent cuts to inspections, college access and frontline public services.

Opposition centered on specific industries that said the measure would hit revenue sources essential to narrow‑margin operations. Lisa Brummell, co‑owner of the Seattle Storm, testified the teams rely on sponsorship and signage revenue that makes up a large share of income and asked that arena signage be excluded. Anne Shively, vice president and general manager of the Tri‑City Dust Devils, told lawmakers the bill would “increase our tax rate on sign revenue by over 600%” and would be “devastating” to minor‑league sports teams that rely on local sign advertising. Chris Massey, representing Seattle Rain FC and Seattle Sounders FC, asked for a carve‑out for physical signage because the bill exempts traditional TV and radio advertising.

Trade groups and business tax experts urged rejection of portions of the expansion. Patrick Reynolds of the Council on State Taxation said many of the proposed business‑to‑business service taxes “cause pyramiding, which results in a lack of transparency.” Deb Peters, representing Americans for Digital Opportunity, said the digital advertising component raises potential legal risks, including possible conflict with the federal Internet Tax Freedom Act and Commerce Clause concerns.

On tobacco, advocates including Annie Tagan of Tobacco Free Kids and Ben Buckholtz of the Vapor Technology Association supported the higher cigarette tax and expanded coverage of nicotine products as a public‑health measure. Tagan said the tax is “incredibly effective as a deterrent for youth smokers” and would support prevention and cessation programs.

The bill also includes an administrative provision King described as a one‑time sales‑tax prepayment: taxpayers who file monthly combined excise returns and who had $3,000,000 or more in taxable retail sales during calendar 2026 must make a one‑time prepayment due June 25, 2027 equal to 80% of the state sales tax collected and remitted for the June 2026 reporting period; the remaining liability would be reconciled on the regularly filed return due July 26, 2027. King said penalties would apply for underpayment but that the Department of Revenue may waive penalties if a taxpayer demonstrates June 2027 retail sales were less than the June 2026 amount.

No votes were taken. The committee concluded the public hearing after hearing multiple panels of in‑person and remote witnesses and instructed that written testimony be submitted within 24 hours for anyone who did not testify in person.

Ending: The committee did not act on the measure at the hearing; hearings for the same bill and related tax proposals are expected to continue as legislators weigh revenue options for the budget cycle.","mediaType","Video","parentTitle","House Finance - 4/21/2025 9:00 AM","oneSentenceSummary","A legislative committee held a public hearing April 21 on Senate Bill 58 14, which would expand sales taxes to multiple services and digital products, increase per‑cigarette taxes and require a one‑time prepayment of state sales tax by very large retailers.","taxTitle","Finance, House of Representatives, Legislative Sessions, Washington","taxId",20261,"location","Washington","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6267435,"Hearing on bill to repeal or sunset multiple tax preferences draws varied industry opposition and labor support",2091,2095000,3755,"/Search/View?dp=1&key=3070088-c4ac169f55fda842b0306bf11f61e66a&start=2095&end=3","https://assets.pipeline.soar.com/3070088-c4ac169f55fda842b0306bf11f61e66a/thumbnail_2095000.jpg","/articles/6267435/Washington/Hearing-on-bill-to-repeal-or-sunset-multiple-tax-preferences-draws-varied-industry-opposition-and-labor-support","https://secure.pipeline.soar.com/6267435-6422fa416852c426ecb1982f8d946107/orig.mp4?Expires=1770817477&Signature=eV6C1XnLlFO7tK37YWphGa6r21zSOR-3IdA4vWlMWpbn0tPRoABmSf1HpUed8o6yveuAMQkzixvgo~gVbo3nijnoNZPT9StJleSzlM7h39-GhDmWP3h8GG9WWpZajr-EMTszIyTYSsPHu4Ya58eZvAJ-ECC2MO5pFhoOWgbygqa8SNu3e~XRIjdgtgPbg0PwTdmZ97R4fn7MqRFIm60lTHNtjY0PLDzogEGXqw8Vx-sBAYjtrR24vE3o0tDmTfZgXcWDDOfWhd8wnAV1PSRpi1UpZKlr48wLeQ-YrM1BM8gRE0KKtgy9qG-zLfSZ413s31pCCkFlixyOT6GQgm9k0Q__&Key-Pair-Id=KUT5TJCACFTXG","A committee public hearing April 21 reviewed Senate Bill 57 94, which would repeal or sunset a wide range of tax preferences across industries, including several B&O tax deductions and preferential rates, exemptions for precious metals and bullion, the home energy assistance public utility credit, certain insurance prepayment exemptions, and a change to taxation of self‑storage rentals.

Christina King, committee staff, reviewed the list of preferences proposed for repeal or sunset. King described affected preferences including the B&O deduction for interest on certain real estate loans, a preferential rate for international investment management services, exemptions for precious metals and bullion, the home energy assistance public utility credit, and the proposed reclassification of self‑storage rental income out of the rental of real estate exemption beginning April 1, 2026.

Labor and service‑sector witnesses urged the committee not to allow further cuts to long‑term care and other social services and supported closing tax loopholes to preserve funding. Claire Reis, a certified nursing assistant and SEIU 775 member, said chronic short staffing and potential cuts to long‑term care funding would be disastrous for resident care and urged lawmakers to “ask corporations to pay their share.” Members of progressive and poverty‑action coalitions and health professionals argued that closing exemptions is necessary to maintain childcare, public health and education services.

Industry groups objected to specific repeals. The Washington State Self Storage Association, represented by Lance Baker and Patrick Gilroy, said the change to self‑storage taxation would disproportionately affect mom‑and‑pop operators—more than half of Washington’s storage facilities are single‑store operators, the witnesses said—and would make storage less affordable for lower‑income households. The Washington Coin and Bullion Association and several family coin dealers opposed repealing the precious‑metals exemption, arguing earlier decisions and parity with other investments support the exemption and that adding a sales tax would push buyers out of state.

Health‑sector speakers asked the committee to preserve targeted preferences that support service delivery. Sean Pickard of Delta Dental asked lawmakers not to eliminate a tax preference for dental services, saying repeal would increase the cost of dental coverage and make it harder to run state programs such as school‑based oral health initiatives. The Healthcare Distribution Alliance asked the committee to preserve the B&O preference for warehousing and reselling prescription drugs, warning repeal would increase patient costs and make in‑state pharmacy operations more difficult.

Other industries urged specific fixes: Russell Investments asked removal of a large rate increase being applied to international investment management services; AAA Washington opposed changing the tax treatment of insurance producers and urged support for the local agent model; and the Washington Public Utility District Association asked that the public utility tax credit for low‑income customers not be repealed because it funds low‑income rate assistance.

The committee closed public testimony and gave administrative deadlines for amendment requests and posting. No votes were taken at the hearing.

Ending: The hearing closed with the committee setting amendment request and posting deadlines; staff noted fiscal notes had been requested where applicable.","A public hearing April 21 on Senate Bill 57 94 considered repealing or sunsetting numerous tax preferences, drawing both labor and industry testimony on specific carve‑outs.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6267440,"Committee hears testimony for higher top rate on capital gains and increased estate tax exclusion, supporters cite education funding",588,1317000,1905000,"/Search/View?dp=1&key=3070088-c4ac169f55fda842b0306bf11f61e66a&start=1317&end=1905","https://assets.pipeline.soar.com/3070088-c4ac169f55fda842b0306bf11f61e66a/thumbnail_1317000.jpg","/articles/6267440/Washington/Committee-hears-testimony-for-higher-top-rate-on-capital-gains-and-increased-estate-tax-exclusion-supporters-cite-education-funding","https://secure.pipeline.soar.com/6267440-05fe77658f8bcbd554293c80d8295b5b/orig.mp4?Expires=1770817477&Signature=H26c1c78oiApkO7ItPMUKeO4lMp1Goan-5hqf5igX6ocmL4eyroZsWrkGHelyfhuuSl2rF3uQH1l8dqSCTVgAUUWiZQsw-ko-2N~m~P8zdLCeoJCuXdmOIEpVjtnGi1VDmfs6IAo9Dne-VVdNlUnAjddfpXooCwpeYzhoktsHIv-3~VVmfIH9UiHRGd7l0af4CL8Tac91PAr73E9crI3kjgbQvxcHSQLBnS9KKO7ZV56f7CzPtKP1AxghkWcQW6QFIEIENywHz~A13qH2caEIM27eD2Zi-tKVUeo8ceFo3VN1HLvGFy6E3jVaTagfZhYPE~udY~EakEkmbRo7O9s6Q__&Key-Pair-Id=KUT5TJCACFTXG","A legislative committee heard public testimony April 21 on Senate Bill 58 13, a proposal to change the state’s capital gains excise tax and to alter estate‑tax exclusion amounts and deductions. The bill would keep the capital gains base but add a higher 9.9% tier for gains over $1,000,000, raise the estate tax exclusion to $3,000,000 indexed to inflation, increase the qualified family‑owned business deduction, and apply new estate tax bracket rates beginning in 2025 with an emergency clause in the text.

Tracy Taylor, committee staff, summarized the current law and the bill’s changes: the state’s capital gains excise tax is currently 7% with a standard deduction; the bill would apply 7% up to $1 million and 9.9% on gains above that threshold beginning in tax year 2025 with collection in calendar year 2026. Taylor also described proceeds flow: the first $500,000,000 each fiscal year from the capital gains tax go to the Education Legacy Trust Account, with remaining proceeds to the common school construction account. Taylor said a fiscal note for the engrossed substitute has been requested but not yet received.

Supporters framed the proposal as a targeted way to protect education and early‑childhood programs. Kristen Eng of Faith Action Network urged lawmakers to view the bill as a way to “ensure the basic needs in our communities are met” and said the new top tier “affect[s] only a few thousand taxpayers.” Tracy Underwood of the Economic Opportunity Institute said modest rate increases on extreme gains would not alter wealthy taxpayers’ lifestyles but would make a “big difference for Washington students.” Multiple witnesses from MomsRising, Food Lifeline and other advocacy groups tied the revenue prospect to preventing cuts to child care, K‑12 education and student supports.

Opposition and technical questions focused on small‑business carve‑outs and the interaction between the estate tax qualified family‑owned business interest (CUFABI) and capital‑gains provisions. Patrick Connor of NFIB asked lawmakers to replace or align the CUFABI under the estate tax with a comparable capital gains deduction to avoid removing protections that facilitate intergenerational transfers. Connor warned that making CUFABI effectively identical to the standard deduction would “eliminate the value” of that small‑business protection and introduce compliance burdens and a potential three‑year survival penalty.

Taylor cited estimated revenue increases in staff analysis for fiscal years 2026 and 2027 and projected additional resources for the Education Legacy Trust Account under the engrossed substitute but noted the fiscal estimate is still pending for the final substitute language.

No committee action was taken at the hearing. The committee closed public testimony and invited written submissions within 24 hours.","Senate Bill 58 13 would create a new 9.9% top tier on capital gains above $1 million and increase the estate tax exclusion to $3 million with inflation indexing. Supporters said the changes protect education and social programs; opponents raised concerns about small business transition rules and administrative complexity.","actionData","errors"]

Article not found

Committee hears hours of testimony on proposed expansion of sales tax to services, digital advertising and additional cigarette tax

Hearing on bill to repeal or sunset multiple tax preferences draws varied industry opposition and labor support

Committee hears testimony for higher top rate on capital gains and increased estate tax exclusion, supporters cite education funding