The bill codifying the Department of Revenue’s (DOR’s) guidance for implementation of sales taxes on services passed the Legislature on March 10. The Senate concurred with the amendments made on the House floor on March 6, and the bill has moved to the Governor’s desk for signature.

SB 6113 was introduced at DOR’s request to make technical changes to state taxes, including the new sales taxes on services (SB 5814) retroactive to the bill’s effective date of October 1, 2025. The technical changes include:

• Investigation and security services definitions;
• Live presentation exemptions for preschools, youth camps, churches, and music performances and instruction;
• Apportionment by multiple points of use for digital advertising; and
• Existing contracts safe harbor through March 31.

This bill does not contain the full scope of changes to SB 5814 enacted by the Legislature this session. The recently adopted millionaires tax (SB 6346) also makes changes to the sales tax on services in the short term, including further clarifying the application of the sales tax to live presentations and exempting schools and libraries from services sales taxes. The bill also repeals the sales tax on most services beginning in 2029.

Sales tax on services clarification set for House committee vote

February 27, 2026

The bill to codify the Department of Revenue’s (DOR’s) guidance for implementation of sales taxes on services is scheduled to be voted out of the House Finance Committee on March 2. SB 6113 includes technical changes to state taxes, including the new sales taxes on services (SB 5814) retroactive to the bill’s effective date of October 1, 2025.

Date to remember

SB 6113 is scheduled for a vote in the House Finance Committee on Monday, March 2, at 8 am.

Sales tax on services clarification passes Senate

February 20, 2026

The agency-proposed bill to clarify the Department of Revenue’s (DOR’s) implementation of sales taxes on services passed the Senate on February 16. SB 6113 makes a number of technical changes to state taxes, including clarification of the sales taxes on services (SB 5814) retroactive to the bill’s effective date of October 1, 2025.

These changes are intended to be revenue neutral but could impact cities as tax collectors or taxpayers on sales of newly clarified services, such as live presentations.

This is just one of several bills that were considered this session that could change or impact the services sales tax. An amendment to the tax on millionaires (SB 6346) would repeal the sales tax on services, with the exception of advertising, beginning in 2030.

See DOR’s guidance for more information on implementation of the services sales tax.

Bill clarifying implementation of sales tax on services moves to Rules Committee

February 6, 2026

The agency-proposed bill to clarify the Department of Revenue’s (DOR’s) implementation of sales taxes on services moved out of the House Finance Committee on February 4. HB 2257 codifies DOR’s guidance on last year’s services sales tax (SB 5814) retroactive to the bill’s effective date of October 1, 2025, and puts in statute the safe harbor for preexisting service contracts through March 31, 2026. The amended version of the bill also clarifies implementation for some of the other taxes enacted last year to address the state’s budget gap.

If your city is encountering questions in implementing the provisions regarding sales taxes on services, please let AWC know so we can add them to our list. See DOR’s guidance for more information on implementation.

Agency-requested bill clarifies implementation of sales tax on services

January 19, 2026

A bill to codify the implementation of new sales taxes on services has been introduced at the request of the Department of Revenue (DOR). SB 6113 is sponsored by Sen. Noel Frame (D–Seattle), and companion bill HB 2257 is sponsored by Rep. April Berg (D–Mill Creek).

The Legislature passed SB 5814 imposing new sales tax requirements on certain services last year. DOR issued interim guidance that answered questions about impacts on schools, existing contracts, advertising, and security services. This bill would codify some of that guidance, retroactive to the bill’s effective date, including:

• Investigation and security services definitions;
• Live presentation exemptions for preschools, youth camps, and churches;
• Apportionment by multiple points of use for digital advertising; and
• Existing contracts safe harbor through March 31.

Cities also had a number of questions about impacts of this new law related to contracts with city law enforcement services for events or with other entities such as transit; impacts on interlocal agreements for IT services; and how live presentation rules should be interpreted for recreation and senior center activities.

AWC will be tracking this and other proposed legislation impacting the provisions of SB 5814 as they relate to sales taxes on services for cities to ensure that outstanding questions for cities are resolved.

Date to remember

SB 6113 is scheduled for a hearing in the Senate Ways & Means Committee at 4 pm on Thursday, January 22.