Opposition mounts against Washington's Senate Bill 5814 taxing digital advertising

A heated debate erupted during the House Finance meeting on April 21, 2025, as stakeholders voiced strong opposition to Senate Bill 5814, which proposes a tax on digital and nondigital advertising services. Key figures, including former South Dakota Senator Deb Peters, argued that the bill would impose significant financial burdens on local businesses and consumers while raising serious legal concerns.

Peters, representing the Americans for Digital Opportunity, emphasized that the proposed tax could violate the Internet Tax Freedom Act and the Commerce Clause, potentially leading to discriminatory taxation on electronic commerce. "Advertising is one of the most effective and affordable tools for businesses to reach their consumers," she stated, urging lawmakers to reconsider the bill.

The impact of the bill was further underscored by Anne Shively, vice president of the Tri City Dust Doubles Minor League Baseball team. She revealed that the tax increase on sign advertising could soar by over 600%, threatening the viability of her team and creating an uneven playing field against larger media outlets that would remain exempt from similar tax hikes. "This would be devastating," Shively warned, calling for amendments to protect sign advertising from the tax increase.

Chris Massey, chief legal officer for Seattle's professional soccer teams, echoed these concerns, highlighting the unfairness of excluding signage from the tax exemptions granted to other advertising forms. He argued that the tax could hinder the momentum of local sports teams, particularly as they seek to grow their sponsorship revenue.

As the meeting concluded, the committee was left to weigh the implications of Senate Bill 5814, with calls for amendments to safeguard local businesses and ensure fair competition in the advertising landscape. The outcome of this legislation could significantly affect the financial health of many small enterprises across Washington state.