Washington’s governor signed SB 5814, a bill that will expand the state’s retail sales and use tax to include the sales of digital advertising services starting October 1, 2025. The tax will apply to digital marketing, data processing, custom software support, and online advertising services. It will exclude print and broadcast ads.

The bottom line: Many expect this bill to be challenged and determined as discriminatory against internet-based services according to the Internet Tax and Freedom Act (ITFA).