The Washington legislature recently enacted Senate Bill 6346 imposing several changes to the sales tax law. Last October, Washington imposed sales tax on custom software, live presentations and a wide range of new services. The new law modifies and clarifies the scope of these services beginning July 1. Specifically, SB 6346:
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Expands the existing exemption from the tax on temporary staffing services for hospitals to certain hospital-based clinical providers.
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Excludes the following activities from the tax on live presentations:
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Before and after-school care at elementary schools
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1-on-1 instructional consulting and tutoring
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music lessons
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presentations given by 501(c) non-profits
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musical, dramatic, comedic, or similar performances
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Exempts sales of live presentations, custom software, and the newly taxable services (excluding advertising services) to public libraries, library districts, library service centers, K-12 schools, school districts, and educational service districts.
The law also repeals the sales tax on live presentations, custom software, and many of the newly taxable services, excluding the new tax on advertising services, starting January 1, 2029.
Additionally, the law creates sales tax exemptions for sales of grooming and hygiene products, diapers, and over the counter drugs beginning January 2029.
Outside of the sales tax changes the new law also creates a 9.9% income tax on individuals with an income over a million dollars.
