Comcast filed a lawsuit challenging Washington's new digital advertising tax, arguing the law violates the federal Internet Tax Freedom Act (ITFA). The tax requires sales tax collection on internet-based advertising services while exempting traditional media like newspapers, television, radio, billboards, and stadium naming rights. The law faces opposition from streaming giants Netflix, Paramount+, Peacock, and Disney. 

The bottom line: Businesses providing digital advertising services in Washington should prepare for the October 1, 2025 implementation date while monitoring this legal challenge. If Comcast wins, the state loses $475 million in projected tax revenue over four years. The Department of Revenue will release interim guidance within two weeks for taxpayers to follow during the legal proceedings.