Live presentations/sales tax

AN ACT Relating to exempting live presentations from retail sales 1
and use tax; amending RCW 82.04.050 and 82.04.192; creating a new 2
section; and providing an effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.04.050 and 2025 c 422 s 101 are each amended to 5
read as follows: 6
(1)(a) "Sale at retail" or "retail sale" means every sale of 7
tangible personal property (including articles produced, fabricated, 8
or imprinted) to all persons irrespective of the nature of their 9
business and including, among others, without limiting the scope 10
hereof, persons who install, repair, clean, alter, improve, 11
construct, or decorate real or personal property of or for consumers 12
other than a sale to a person who: 13
(i) Purchases for the purpose of resale as tangible personal 14
property in the regular course of business without intervening use by 15
such person, but a purchase for the purpose of resale by a regional 16
transit authority under RCW 81.112.300 is not a sale for resale; or17
(ii) Installs, repairs, cleans, alters, imprints, improves, 18
constructs, or decorates real or personal property of or for 19
consumers, if such tangible personal property becomes an ingredient 20
S-3602.1
SENATE BILL 5980
State of Washington 69th Legislature 2026 Regular Session
By Senators Torres, Dozier, Gildon, and Warnick
Prefiled 01/05/26. Read first time 01/12/26. Referred to Committee
on Ways & Means.
p. 1 SB 5980
or component of such real or personal property without intervening 1
use by such person; or 2
(iii) Purchases for the purpose of consuming the property 3
purchased in producing for sale as a new article of tangible personal 4
property or substance, of which such property becomes an ingredient 5
or component or is a chemical used in processing, when the primary 6
purpose of such chemical is to create a chemical reaction directly 7
through contact with an ingredient of a new article being produced 8
for sale; or 9
(iv) Purchases for the purpose of consuming the property 10
purchased in producing ferrosilicon which is subsequently used in 11
producing magnesium for sale, if the primary purpose of such property 12
is to create a chemical reaction directly through contact with an 13
ingredient of ferrosilicon; or 14
(v) Purchases for the purpose of providing the property to 15
consumers as part of competitive telephone service, as defined in RCW 16
82.04.065; or 17
(vi) Purchases for the purpose of satisfying the person's 18
obligations under an extended warranty as defined in subsection (7) 19
of this section, if such tangible personal property replaces or 20
becomes an ingredient or component of property covered by the 21
extended warranty without intervening use by such person.22
(b) The term includes every sale of tangible personal property 23
that is used or consumed or to be used or consumed in the performance 24
of any activity defined as a "sale at retail" or "retail sale" even 25
though such property is resold or used as provided in (a)(i) through 26
(vi) of this subsection following such use. 27
(c) The term also means every sale of tangible personal property 28
to persons engaged in any business that is taxable under RCW 29
82.04.280(1) (a), (b), and (((g))) (f), 82.04.290, and 82.04.2908.30
(2) The term "sale at retail" or "retail sale" includes the sale 31
of or charge made for tangible personal property consumed and/or for 32
labor and services rendered in respect to the following:33
(a) The installing, repairing, cleaning, altering, imprinting, or 34
improving of tangible personal property of or for consumers, 35
including charges made for the mere use of facilities in respect 36
thereto, but excluding charges made for the use of self-service 37
laundry facilities, and also excluding sales of laundry service to 38
nonprofit health care facilities, and excluding services rendered in 39
respect to live animals, birds and insects; 40
p. 2 SB 5980
(b) The constructing, repairing, decorating, or improving of new 1
or existing buildings or other structures under, upon, or above real 2
property of or for consumers, including the installing or attaching 3
of any article of tangible personal property therein or thereto, 4
whether or not such personal property becomes a part of the realty by 5
virtue of installation, and also includes the sale of services or 6
charges made for the clearing of land and the moving of earth 7
excepting the mere leveling of land used in commercial farming or 8
agriculture; 9
(c) The constructing, repairing, or improving of any structure 10
upon, above, or under any real property owned by an owner who conveys 11
the property by title, possession, or any other means to the person 12
performing such construction, repair, or improvement for the purpose 13
of performing such construction, repair, or improvement and the 14
property is then reconveyed by title, possession, or any other means 15
to the original owner; 16
(d) The cleaning, fumigating, razing, or moving of existing 17
buildings or structures, but does not include the charge made for 18
janitorial services; and for purposes of this section the term 19
"janitorial services" means those cleaning and caretaking services 20
ordinarily performed by commercial janitor service businesses 21
including, but not limited to, wall and window washing, floor 22
cleaning and waxing, and the cleaning in place of rugs, drapes and 23
upholstery. The term "janitorial services" does not include painting, 24
papering, repairing, furnace or septic tank cleaning, snow removal or 25
sandblasting; 26
(e) Automobile towing and similar automotive transportation 27
services, but not in respect to those required to report and pay 28
taxes under chapter 82.16 RCW; 29
(f) The furnishing of lodging and all other services by a hotel, 30
rooming house, tourist court, motel, trailer camp, and the granting 31
of any similar license to use real property, as distinguished from 32
the renting or leasing of real property, and it is presumed that the 33
occupancy of real property for a continuous period of one month or 34
more constitutes a rental or lease of real property and not a mere 35
license to use or enjoy the same. For the purposes of this 36
subsection, it is presumed that the sale of and charge made for the 37
furnishing of lodging for a continuous period of one month or more to 38
a person is a rental or lease of real property and not a mere license 39
to enjoy the same. For the purposes of this section, it is presumed 40
p. 3 SB 5980
that the sale of and charge made for the furnishing of lodging 1
offered regularly for public occupancy for periods of less than a 2
month constitutes a license to use or enjoy the property subject to 3
sales and use tax and not a rental or lease of property;4
(g) The installing, repairing, altering, or improving of digital 5
goods for consumers; 6
(h) Persons taxable under (a), (b), (c), (d), (e), (f), and (g) 7
of this subsection when such sales or charges are for property, labor 8
and services which are used or consumed in whole or in part by such 9
persons in the performance of any activity defined as a "sale at 10
retail" or "retail sale" even though such property, labor and 11
services may be resold after such use or consumption. Nothing 12
contained in this subsection may be construed to modify subsection 13
(1) of this section and nothing contained in subsection (1) of this 14
section may be construed to modify this subsection.15
(3) The term "sale at retail" or "retail sale" includes the sale 16
of or charge made for personal, business, or professional services 17
including amounts designated as interest, rents, fees, admission, and 18
other service emoluments however designated, received by persons 19
engaging in the following business activities: 20
(a) Abstract, title insurance, and escrow services;21
(b) Credit bureau services; 22
(c) Automobile parking and storage garage services;23
(d) Landscape maintenance and horticultural services but 24
excluding (i) horticultural services provided to farmers and (ii) 25
pruning, trimming, repairing, removing, and clearing of trees and 26
brush near electric transmission or distribution lines or equipment, 27
if performed by or at the direction of an electric utility;28
(e) Service charges associated with tickets to professional 29
sporting events; 30
(f) The following personal services: Tanning salon services, 31
tattoo parlor services, steam bath services, turkish bath services, 32
escort services, and dating services; 33
(g) Information technology training services, technical support, 34
and other services including, but not limited to, assisting with 35
network operations and support, help desk services, in-person 36
training related to hardware or software, network system support 37
services, data entry services, and data processing services;38
(h) Custom website development services. For the purposes of this 39
subsection (3), "website development services" means the design, 40
p. 4 SB 5980
development, and support of a website provided by a website developer 1
to a customer; 2
(i) Investigation, security services, security monitoring 3
services, and armored car services including, but not limited to, 4
background checks, security guard and patrol services, personal and 5
event security, armored car transportation of cash and valuables, and 6
security system services and monitoring. This does not include 7
locksmith services; 8
(j) Temporary staffing services. For the purposes of this 9
subsection (3), "temporary staffing services" means providing workers 10
to other businesses, except for hospitals licensed under chapter 11
70.41 or 71.12 RCW, for limited periods of time to supplement their 12
workforce and fill employment vacancies on a contract or for fee 13
basis; 14
(k) Advertising services. (i) For the purposes of this subsection 15
(3), "advertising services" means all digital and nondigital services 16
related to the creation, preparation, production, or dissemination of 17
advertisements including, but not limited to: 18
(A) Layout, art direction, graphic design, mechanical 19
preparation, production supervision, placement, referrals, 20
acquisition of advertising space, and rendering advice concerning the 21
best methods of advertising products or services; and22
(B) Online referrals, search engine marketing ((,)) and lead 23
generation optimization, web campaign planning, the acquisition of 24
advertising space in the internet media, and the monitoring and 25
evaluation of website traffic for purposes of determining the 26
effectiveness of an advertising campaign. 27
(ii) "Advertising services" do not include: 28
(A) Web hosting services and domain name registration;29
(B) Services rendered in respect to the following:30
(I) "Newspapers" as defined in RCW 82.04.214; 31
(II) Printing or publishing under RCW 82.04.280; and32
(III) "Radio and television broadcasting" within this state as 33
defined in RCW 82.04.281; and 34
(C) Services rendered in respect to out-of-home advertising, 35
including: Billboard advertising; street furniture advertising; 36
transit advertising; place-based advertising, such as in-store 37
display advertising or point-of-sale advertising; dynamic or static 38
signage at live events; naming rights; and fixed signage advertising. 39
Out-of-home advertising does not include direct mail; and40
p. 5 SB 5980
(l) ((Live presentations including, but not limited to, lectures, 1
seminars, workshops, or courses where participants attend either in-2
person or via the internet or telecommunications equipment that 3
allows audience members and the presenter or instructor to give, 4
receive, and discuss information with each other in real time; and5
(m)))(i) Operating an athletic or fitness facility, including all 6
charges for the use of such a facility or for any associated services 7
and amenities, except as provided in (((m))) (l)(ii) of this 8
subsection. 9
(ii) Notwithstanding anything to the contrary in (((m))) (l)(i) 10
of this subsection (3), the term "sale at retail" and "retail sale" 11
under this subsection does not include: 12
(A) Separately stated charges for the use of an athletic or 13
fitness facility where such use is primarily for a purpose other than 14
engaging in or receiving instruction in a physical fitness activity;15
(B) Separately stated charges for the use of a discrete portion 16
of an athletic or fitness facility, other than a pool, where such 17
discrete portion of the facility does not by itself meet the 18
definition of "athletic or fitness facility" in this subsection;19
(C) Separately stated charges for services, such as massage, 20
nutritional consulting, and body composition testing, that do not 21
require the customer to engage in physical fitness activities to 22
receive the service. The exclusion in this subsection (3)(((m))) (l)23
(ii)(C) does not apply to personal training services and instruction 24
in a physical fitness activity; 25
(D) Separately stated charges for physical therapy provided by a 26
physical therapist, as those terms are defined in RCW 18.74.010, or 27
occupational therapy provided by an occupational therapy 28
practitioner, as those terms are defined in RCW 18.59.020, when 29
performed pursuant to a referral from an authorized health care 30
practitioner or in consultation with an authorized health care 31
practitioner. For the purposes of this subsection (3)(((m))) (l)32
(ii)(D), an authorized health care practitioner means a health care 33
practitioner licensed under chapter 18.83, 18.25, 18.36A, 18.57, 34
18.71, or 18.71A RCW, or, until July 1, 2022, chapter 18.57A RCW;35
(E) Rent or association fees charged by a landlord or residential 36
association to a tenant or residential owner with access to an 37
athletic or fitness facility maintained by the landlord or 38
residential association, unless the rent or fee varies depending on 39
whether the tenant or owner has access to the facility;40
p. 6 SB 5980
(F) Services provided in the regular course of employment by an 1
employee with access to an athletic or fitness facility maintained by 2
the employer for use without charge by its employees or their family 3
members; 4
(G) The provision of access to an athletic or fitness facility by 5
an educational institution to its students and staff. However, 6
charges made by an educational institution to its alumni or other 7
members of the public for the use of any of the educational 8
institution's athletic or fitness facilities are a retail sale under 9
this subsection (3)(((m))) (l). For purposes of this subsection (3)10
(((m))) (l)(ii)(G), "educational institution" has the same meaning as 11
in RCW 82.04.170; 12
(H) Yoga, chi gong, or martial arts classes, training, or events 13
held at a community center, park, school gymnasium, college or 14
university, hospital or other medical facility, private residence, or 15
any other facility that is not operated within and as part of an 16
athletic or fitness facility. 17
(iii) Nothing in (((m))) (l)(ii) of this subsection (3) may be 18
construed to affect the taxation of sales made by the operator of an 19
athletic or fitness facility, where such sales are defined as a 20
retail sale under any provision of this section other than this 21
subsection (3). 22
(iv) For the purposes of this subsection (3)(((m))) (l), the 23
following definitions apply: 24
(A) "Athletic or fitness facility" means an indoor or outdoor 25
facility or portion of a facility that is primarily used for: 26
Exercise classes; strength and conditioning programs; personal 27
training services; tennis, racquetball, handball, squash, or 28
pickleball; or other activities requiring the use of exercise or 29
strength training equipment, such as treadmills, elliptical machines, 30
stair climbers, stationary cycles, rowing machines, pilates 31
equipment, balls, climbing ropes, jump ropes, and weightlifting 32
equipment. 33
(B) "Martial arts" means any of the various systems of training 34
for physical combat or self-defense. "Martial arts" includes, but is 35
not limited to, karate, kung fu, tae kwon do, Krav Maga, boxing, 36
kickboxing, jujitsu, shootfighting, wrestling, aikido, judo, hapkido, 37
Kendo, tai chi, and mixed martial arts. 38
(C) "Physical fitness activities" means activities that involve 39
physical exertion for the purpose of improving or maintaining the 40
p. 7 SB 5980
general fitness, strength, flexibility, conditioning, or health of 1
the participant. "Physical fitness activities" includes participating 2
in yoga, chi gong, or martial arts. 3
For the purposes of (g) through (i) and (k) of this subsection 4
(3), the terms "sale at retail" and "retail sale" do not include a 5
sale between members of an affiliated group as defined in RCW 6
82.04.299(1)(f). 7
(4)(a) The term also includes the renting or leasing of tangible 8
personal property to consumers. 9
(b) The term does not include the renting or leasing of tangible 10
personal property where the lease or rental is for the purpose of 11
sublease or subrent. 12
(5) The term also includes the providing of "competitive 13
telephone service," "telecommunications service," or "ancillary 14
services," as those terms are defined in RCW 82.04.065, to consumers.15
(6)(a) The term also includes the sale of prewritten computer 16
software, custom software, and customization of prewritten computer 17
software to a consumer, regardless of the method of delivery to the 18
end user. For purposes of this subsection (6)(a), the sale of 19
prewritten computer software includes the sale of or charge made for 20
a key or an enabling or activation code, where the key or code is 21
required to activate prewritten computer software and put the 22
software into use. There is no separate sale of the key or code from 23
the prewritten computer software, regardless of how the sale may be 24
characterized by the vendor or by the purchaser. 25
(b)(i) The term also includes the charge made to consumers for 26
the right to access and use prewritten computer software, custom 27
software, and customization of prewritten computer software, where 28
possession of the software is maintained by the seller or a third 29
party, regardless of whether the charge for the service is on a per 30
use, per user, per license, subscription, or some other basis.31
(ii)(A) The service described in (b)(i) of this subsection (6) 32
includes the right to access and use prewritten computer software, 33
custom software, and customization of prewritten computer software to 34
perform data processing. 35
(B) For purposes of this subsection (6)(b)(ii), "data processing" 36
means the systematic performance of operations on data to extract the 37
required information in an appropriate form or to convert the data to 38
usable information. Data processing includes check processing, image 39
p. 8 SB 5980
processing, form processing, survey processing, payroll processing, 1
claim processing, and similar activities. 2
(7) The term also includes the sale of or charge made for an 3
extended warranty to a consumer. For purposes of this subsection, 4
"extended warranty" means an agreement for a specified duration to 5
perform the replacement or repair of tangible personal property at no 6
additional charge or a reduced charge for tangible personal property, 7
labor, or both, or to provide indemnification for the replacement or 8
repair of tangible personal property, based on the occurrence of 9
specified events. The term "extended warranty" does not include an 10
agreement, otherwise meeting the definition of extended warranty in 11
this subsection, if no separate charge is made for the agreement and 12
the value of the agreement is included in the sales price of the 13
tangible personal property covered by the agreement. For purposes of 14
this subsection, "sales price" has the same meaning as in RCW 15
82.08.010. 16
(8)(a) The term also includes the following sales to consumers of 17
digital goods, digital codes, and digital automated services:18
(i) Sales in which the seller has granted the purchaser the right 19
of permanent use; 20
(ii) Sales in which the seller has granted the purchaser a right 21
of use that is less than permanent; 22
(iii) Sales in which the purchaser is not obligated to make 23
continued payment as a condition of the sale; and 24
(iv) Sales in which the purchaser is obligated to make continued 25
payment as a condition of the sale. 26
(b) A retail sale of digital goods, digital codes, or digital 27
automated services under this subsection (8) includes any services 28
provided by the seller exclusively in connection with the digital 29
goods, digital codes, or digital automated services, whether or not a 30
separate charge is made for such services. 31
(c) A retail sale of digital goods, digital codes, or digital 32
automated services does not include the following services if the 33
sale occurs between members of an affiliated group as defined in RCW 34
82.04.299(1)(f): 35
(i) Any service that primarily involves the application of human 36
effort by the seller, and the human effort originated after the 37
customer requested the service; 38
(ii) ((Live presentations, such as lectures, seminars, workshops, 39
or courses, where participants are connected to other participants 40
p. 9 SB 5980
via the internet or telecommunications equipment, which allows 1
audience members and the presenter or instructor to give, receive, 2
and discuss information with each other in real time;3
(iii))) Advertising services. For purposes of this subsection 4
(8)(c), "advertising services" means all services directly related to 5
the creation, preparation, production, or dissemination of 6
advertisements. Advertising services include layout, art direction, 7
graphic design, mechanical preparation, production supervision, 8
placement, and rendering advice to a client concerning the best 9
methods of advertising that client's products or services. 10
Advertising services also include online referrals, search engine 11
marketing and lead generation optimization, web campaign planning, 12
the acquisition of advertising space in the internet media, and the 13
monitoring and evaluation of website traffic for purposes of 14
determining the effectiveness of an advertising campaign. Advertising 15
services do not include web hosting services and domain name 16
registration; and 17
(((iv))) (iii) Data processing services. For purposes of this 18
subsection (8)(c), "data processing service" means a primarily 19
automated service provided to a business or other organization where 20
the primary object of the service is the systematic performance of 21
operations by the service provider on data supplied in whole or in 22
part by the customer to extract the required information in an 23
appropriate form or to convert the data to usable information. Data 24
processing services include check processing, image processing, form 25
processing, survey processing, payroll processing, claim processing, 26
and similar activities. Data processing does not include the service 27
described in subsection (6)(b) of this section. 28
(d) For purposes of this subsection, "permanent" means perpetual 29
or for an indefinite or unspecified length of time. A right of 30
permanent use is presumed to have been granted unless the agreement 31
between the seller and the purchaser specifies or the circumstances 32
surrounding the transaction suggest or indicate that the right to use 33
terminates on the occurrence of a condition subsequent.34
(9) The term also includes the charge made for providing tangible 35
personal property along with an operator for a fixed or indeterminate 36
period of time. A consideration of this is that the operator is 37
necessary for the tangible personal property to perform as designed. 38
For the purpose of this subsection (9), an operator must do more than 39
maintain, inspect, or set up the tangible personal property.40
p. 10 SB 5980
(10) The term does not include the sale of or charge made for 1
labor and services rendered in respect to the building, repairing, or 2
improving of any street, place, road, highway, easement, right-of-3
way, mass public transportation terminal or parking facility, bridge, 4
tunnel, or trestle which is owned by a municipal corporation or 5
political subdivision of the state or by the United States and which 6
is used or to be used primarily for foot or vehicular traffic 7
including mass transportation vehicles of any kind.8
(11) The term also does not include sales of chemical sprays or 9
washes to persons for the purpose of postharvest treatment of fruit 10
for the prevention of scald, fungus, mold, or decay, nor does it 11
include sales of feed, seed, seedlings, fertilizer, agents for 12
enhanced pollination including insects such as bees, and spray 13
materials to: (a) Persons who participate in the federal conservation 14
reserve program, the environmental quality incentives program, the 15
wetlands reserve program, and the wildlife habitat incentives 16
program, or their successors administered by the United States 17
department of agriculture; (b) farmers for the purpose of producing 18
for sale any agricultural product; (c) farmers for the purpose of 19
providing bee pollination services; and (d) farmers acting under 20
cooperative habitat development or access contracts with an 21
organization exempt from federal income tax under 26 U.S.C. Sec. 22
501(c)(3) of the federal internal revenue code or the Washington 23
state department of fish and wildlife to produce or improve wildlife 24
habitat on land that the farmer owns or leases. 25
(12) The term does not include the sale of or charge made for 26
labor and services rendered in respect to the constructing, 27
repairing, decorating, or improving of new or existing buildings or 28
other structures under, upon, or above real property of or for the 29
United States, any instrumentality thereof, or a county or city 30
housing authority created pursuant to chapter 35.82 RCW, including 31
the installing, or attaching of any article of tangible personal 32
property therein or thereto, whether or not such personal property 33
becomes a part of the realty by virtue of installation. Nor does the 34
term include the sale of services or charges made for the clearing of 35
land and the moving of earth of or for the United States, any 36
instrumentality thereof, or a county or city housing authority. Nor 37
does the term include the sale of services or charges made for 38
cleaning up for the United States, or its instrumentalities, 39
p. 11 SB 5980
radioactive waste and other by-products of weapons production and 1
nuclear research and development. 2
(13) The term does not include the sale of or charge made for 3
labor, services, or tangible personal property pursuant to agreements 4
providing maintenance services for bus, rail, or rail fixed guideway 5
equipment when a regional transit authority is the recipient of the 6
labor, services, or tangible personal property, and a transit agency, 7
as defined in RCW 81.104.015, performs the labor or services.8
(14) The term does not include the sale for resale of any service 9
described in this section if the sale would otherwise constitute a 10
"sale at retail" and "retail sale" under this section.11
(15)(a) The term "sale at retail" or "retail sale" includes 12
amounts charged, however labeled, to consumers to engage in any of 13
the activities listed in this subsection (15)(a), including the 14
furnishing of any associated equipment or, except as otherwise 15
provided in this subsection, providing instruction in such 16
activities, where such charges are not otherwise defined as a "sale 17
at retail" or "retail sale" in this section: 18
(i)(A) Golf, including any variant in which either golf balls or 19
golf clubs are used, such as miniature golf, hitting golf balls at a 20
driving range, and golf simulators, and including fees charged by a 21
golf course to a player for using his or her own cart. However, 22
charges for golf instruction are not a retail sale, provided that if 23
the instruction involves the use of a golfing facility that would 24
otherwise require the payment of a fee, such as green fees or driving 25
range fees, such fees, including the applicable retail sales tax, 26
must be separately identified and charged by the golfing facility 27
operator to the instructor or the person receiving the instruction.28
(B) Notwithstanding (a)(i)(A) of this subsection (15) and except 29
as otherwise provided in this subsection (15)(a)(i)(B), the term 30
"sale at retail" or "retail sale" does not include amounts charged to 31
participate in, or conduct, a golf tournament or other competitive 32
event. However, amounts paid by event participants to the golf 33
facility operator are retail sales under this subsection (15)(a)(i). 34
Likewise, amounts paid by the event organizer to the golf facility 35
are retail sales under this subsection (15)(a)(i), if such amounts 36
vary based on the number of event participants; 37
(ii) Ballooning, hang gliding, indoor or outdoor sky diving, 38
paragliding, parasailing, and similar activities; 39
p. 12 SB 5980
(iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, 1
ping pong, and similar games; 2
(iv) Access to amusement park, theme park, and water park 3
facilities, including but not limited to charges for admission and 4
locker or cabana rentals. Discrete charges for rides or other 5
attractions or entertainment that are in addition to the charge for 6
admission are not a retail sale under this subsection (15)(a)(iv). 7
For the purposes of this subsection, an amusement park or theme park 8
is a location that provides permanently affixed amusement rides, 9
games, and other entertainment, but does not include parks or zoos 10
for which the primary purpose is the exhibition of wildlife, or 11
fairs, carnivals, and festivals as defined in (b)(i) of this 12
subsection; 13
(v) Batting cage activities; 14
(vi) Bowling, but not including competitive events, except that 15
amounts paid by the event participants to the bowling alley operator 16
are retail sales under this subsection (15)(a)(vi). Likewise, amounts 17
paid by the event organizer to the operator of the bowling alley are 18
retail sales under this subsection (15)(a)(vi), if such amounts vary 19
based on the number of event participants; 20
(vii) Climbing on artificial climbing structures, whether indoors 21
or outdoors; 22
(viii) Day trips for sightseeing purposes; 23
(ix) Bungee jumping, zip lining, and riding inside a ball, 24
whether inflatable or otherwise; 25
(x) Horseback riding offered to the public, where the seller 26
furnishes the horse to the buyer and providing instruction is not the 27
primary focus of the activity, including guided rides, but not 28
including therapeutic horseback riding provided by an instructor 29
certified by a nonprofit organization that offers national or 30
international certification for therapeutic riding instructors;31
(xi) Fishing, including providing access to private fishing areas 32
and charter or guided fishing, except that fishing contests and 33
license fees imposed by a government entity are not a retail sale 34
under this subsection; 35
(xii) Guided hunting and hunting at game farms and shooting 36
preserves, except that hunting contests and license fees imposed by a 37
government entity are not a retail sale under this subsection;38
(xiii) Swimming, but only in respect to (A) recreational or 39
fitness swimming that is open to the public, such as open swim, lap 40
p. 13 SB 5980
swimming, and special events like kids night out and pool parties 1
during open swim time, and (B) pool parties for private events, such 2
as birthdays, family gatherings, and employee outings. Fees for 3
swimming lessons, to participate in swim meets and other 4
competitions, or to join a swim team, club, or aquatic facility are 5
not retail sales under this subsection (15)(a)(xiii);6
(xiv) Go-karting, bumper cars, and other motorized activities 7
where the seller provides the vehicle and the premises where the 8
buyer will operate the vehicle; 9
(xv) Indoor or outdoor playground activities, such as inflatable 10
bounce structures and other inflatables; mazes; trampolines; slides; 11
ball pits; games of tag, including laser tag and soft-dart tag; and 12
human gyroscope rides, regardless of whether such activities occur at 13
the seller's place of business, but not including playground 14
activities provided for children by a licensed child day care center 15
or licensed family day care provider as those terms are defined in 16
RCW 43.216.010; 17
(xvi) Shooting sports and activities, such as target shooting, 18
skeet, trap, sporting clays, "5" stand, and archery, but only in 19
respect to discrete charges to members of the public to engage in 20
these activities, but not including fees to enter a competitive 21
event, instruction that is entirely or predominately classroom based, 22
or to join or renew a membership at a club, range, or other facility;23
(xvii) Paintball and airsoft activities; 24
(xviii) Skating, including ice skating, roller skating, and 25
inline skating, but only in respect to discrete charges to members of 26
the public to engage in skating activities, but not including skating 27
lessons, competitive events, team activities, or fees to join or 28
renew a membership at a skating facility, club, or other 29
organization; 30
(xix) Nonmotorized snow sports and activities, such as downhill 31
and cross-country skiing, snowboarding, ski jumping, sledding, snow 32
tubing, snowshoeing, and similar snow sports and activities, whether 33
engaged in outdoors or in an indoor facility with or without snow, 34
but only in respect to discrete charges to the public for the use of 35
land or facilities to engage in nonmotorized snow sports and 36
activities, such as fees, however labeled, for the use of ski lifts 37
and tows and daily or season passes for access to trails or other 38
areas where nonmotorized snow sports and activities are conducted. 39
However, fees for the following are not retail sales under this 40
p. 14 SB 5980
subsection (15)(a)(xix): (A) Instructional lessons; (B) permits 1
issued by a governmental entity to park a vehicle on or access public 2
lands; and (C) permits or leases granted by an owner of private 3
timberland for recreational access to areas used primarily for 4
growing and harvesting timber; and 5
(xx) Scuba diving; snorkeling; river rafting; surfing; 6
kiteboarding; flyboarding; water slides; inflatables, such as water 7
pillows, water trampolines, and water rollers; and similar water 8
sports and activities. 9
(b) Notwithstanding anything to the contrary in this subsection 10
(15), the term "sale at retail" or "retail sale" does not include 11
charges: 12
(i) Made for admission to, and rides or attractions at, fairs, 13
carnivals, and festivals. For the purposes of this subsection, fairs, 14
carnivals, and festivals are events that do not exceed 21 days and a 15
majority of the amusement rides, if any, are not affixed to real 16
property; 17
(ii) Made by an educational institution to its students and staff 18
for activities defined as retail sales by (a)(i) through (xx) of this 19
subsection. However, charges made by an educational institution to 20
its alumni or other members of the general public for these 21
activities are a retail sale under this subsection (15). For purposes 22
of this subsection (15)(b)(ii), "educational institution" has the 23
same meaning as in RCW 82.04.170; 24
(iii) Made by a vocational school for commercial diver training 25
that is licensed by the workforce training and education coordinating 26
board under chapter 28C.10 RCW; or 27
(iv) Made for day camps offered by a nonprofit organization or 28
state or local governmental entity that provide youth not older than 29
age 18, or that are focused on providing individuals with 30
disabilities or mental illness, the opportunity to participate in a 31
variety of supervised activities. 32
(16)(a) The term "sale at retail" or "retail sale" includes the 33
purchase or acquisition of tangible personal property and specified 34
services by a person who receives either a qualifying grant exempt 35
from tax under RCW 82.04.767 or 82.16.320 or a grant deductible under 36
RCW 82.04.4339, except for transactions excluded from the definition 37
of "sale at retail" or "retail sale" by any other provision of this 38
section. Nothing in this subsection (16) may be construed to limit 39
the application of any other provision of this section to purchases 40
p. 15 SB 5980
by a recipient of either a qualifying grant exempt from tax under RCW 1
82.04.767 or a grant deductible under RCW 82.04.4339, or by any other 2
person. 3
(b) For purposes of this subsection (16), "specified services" 4
means: 5
(i) The constructing, repairing, decorating, or improving of new 6
or existing buildings or other structures under, upon, or above real 7
property, including the installing or attaching of any article of 8
tangible personal property therein or thereto, whether or not such 9
personal property becomes a part of the realty by virtue of 10
installation; 11
(ii) The clearing of land or the moving of earth, whether or not 12
associated with activities described in (b)(i) of this subsection 13
(16); 14
(iii) The razing or moving of existing buildings or structures; 15
and 16
(iv) Landscape maintenance and horticultural services.17
Sec. 2. RCW 82.04.192 and 2025 c 422 s 201 are each amended to 18
read as follows: 19
(1) "Digital audio works" means works that result from the 20
fixation of a series of musical, spoken, or other sounds, including 21
ringtones. 22
(2) "Digital audiovisual works" means a series of related images 23
which, when shown in succession, impart an impression of motion, 24
together with accompanying sounds, if any. 25
(3)(a) "Digital automated service," except as provided in (b) of 26
this subsection (3), means any service transferred electronically 27
that uses one or more software applications. 28
(b) "Digital automated service" does not include:29
(i) The loaning or transferring of money or the purchase, sale, 30
or transfer of financial instruments. For purposes of this subsection 31
(3)(b)(i), "financial instruments" include cash, accounts receivable 32
and payable, loans and notes receivable and payable, debt securities, 33
equity securities, as well as derivative contracts such as forward 34
contracts, swap contracts, and options; 35
(ii) Dispensing cash or other physical items from a machine;36
(iii) Payment processing services; 37
(iv) Parimutuel wagering and handicapping contests as authorized 38
by chapter 67.16 RCW; 39
p. 16 SB 5980
(v) Telecommunications services and ancillary services as those 1
terms are defined in RCW 82.04.065; 2
(vi) The internet and internet access as those terms are defined 3
in RCW 82.04.297; 4
(vii) The service described in RCW 82.04.050(6)(b);5
(viii) Online educational programs provided by a:6
(A) Public or private elementary or secondary school; or7
(B) An institution of higher education as defined in sections 8
1001 or 1002 of the federal higher education act of 1965 (Title 20 9
U.S.C. Secs. 1001 and 1002), as existing on July 1, 2009. For 10
purposes of this subsection (3)(b)(viii)(B), an online educational 11
program must be encompassed within the institution's accreditation;12
(ix) Travel agent services, including online travel services, and 13
automated systems used by travel agents to book reservations;14
(x)(A) A service that allows the person receiving the service to 15
make online sales of products or services, digital or otherwise, 16
using either: (I) The service provider's website; or (II) the service 17
recipient's website, but only when the service provider's technology 18
is used in creating or hosting the service recipient's website or is 19
used in processing orders from customers using the service 20
recipient's website. 21
(B) The service described in this subsection (3)(b)(x) does not 22
include the underlying sale of the products or services, digital or 23
otherwise, by the person receiving the service; 24
(xi) Telehealth as defined in RCW 18.134.010 or telemedicine as 25
defined in RCW 48.43.735; 26
(xii) The mere storage of digital products, digital codes, 27
computer software, or master copies of software. This exclusion from 28
the definition of digital automated services includes providing space 29
on a server for web hosting or the backing up of data or other 30
information; ((and))31
(xiii) Live presentations, such as lectures, seminars, workshops, 32
or courses, where participants are connected to other participants 33
through the internet or telecommunications equipment, which allows 34
audience members and the presenter or instructor to give, receive, 35
and discuss information with each other in real time; and36
(xiv) Digital goods. 37
(4) "Digital books" means works that are generally recognized in 38
the ordinary and usual sense as books. 39
p. 17 SB 5980
(5) "Digital code" means a code that provides a purchaser with 1
the right to obtain one or more digital products, if all of the 2
digital products to be obtained through the use of the code have the 3
same sales and use tax treatment. "Digital code" does not include a 4
code that represents a stored monetary value that is deducted from a 5
total as it is used by the purchaser. "Digital code" also does not 6
include a code that represents a redeemable card, gift card, or gift 7
certificate that entitles the holder to select digital products of an 8
indicated cash value. A digital code may be obtained by any means, 9
including email or by tangible means regardless of its designation as 10
song code, video code, book code, or some other term.11
(6)(a) "Digital goods," except as provided in (b) of this 12
subsection (6), means sounds, images, data, facts, or information, or 13
any combination thereof, transferred electronically, including, but 14
not limited to, specified digital products and other products 15
transferred electronically not included within the definition of 16
specified digital products. 17
(b) The term "digital goods" does not include:18
(i) Telecommunications services and ancillary services as those 19
terms are defined in RCW 82.04.065; 20
(ii) Computer software as defined in RCW 82.04.215;21
(iii) The internet and internet access as those terms are defined 22
in RCW 82.04.297; 23
(iv)(A) Except as provided in (b)(iv)(B) of this subsection (6), 24
the representation of a personal or professional service in 25
electronic form, such as an electronic copy of an engineering report 26
prepared by an engineer, where the service primarily involves the 27
application of human effort by the service provider, and the human 28
effort originated after the customer requested the service.29
(B) The exclusion in (b)(iv)(A) of this subsection (6) does not 30
apply to photographers in respect to amounts received for the taking 31
of photographs that are transferred electronically to the customer, 32
but only if the customer is an end user, as defined in RCW 33
82.04.190(11), of the photographs. Such amounts are considered to be 34
for the sale of digital goods; and 35
(v) Services and activities excluded from the definition of 36
digital automated services in subsection (3)(b)(i) through (((xii))) 37
(xiii) of this section and not otherwise described in (b)(i) through 38
(iv) of this subsection (6). 39
p. 18 SB 5980
(7) "Digital products" means digital goods and digital automated 1
services. 2
(8) "Electronically transferred" or "transferred electronically" 3
means obtained by the purchaser by means other than tangible storage 4
media. It is not necessary that a copy of the product be physically 5
transferred to the purchaser. So long as the purchaser may access the 6
product, it will be considered to have been electronically 7
transferred to the purchaser. 8
(9) "Specified digital products" means electronically transferred 9
digital audiovisual works, digital audio works, and digital books.10
(10) "Subscription radio services" means the sale of audio 11
programming by a radio broadcaster as defined in RCW 82.08.0208, 12
except as otherwise provided in this subsection. "Subscription radio 13
services" does not include audio programming that is sold on a pay-14
per-program basis or that allows the buyer to access a library of 15
programs at any time for a specific charge for that service.16
(11) "Subscription television services" means the sale of video 17
programming by a television broadcaster as defined in RCW 82.08.0208, 18
except as otherwise provided in this subsection. "Subscription 19
television services" does not include video programming that is sold 20
on a pay-per-program basis or that allows the buyer to access a 21
library of programs at any time for a specific charge for that 22
service, but only if the seller is not subject to a franchise fee in 23
this state under the authority of Title 47 U.S.C. Sec. 542 (a) on the 24
gross revenue derived from the sale. 25
NEW SECTION. Sec. 3. RCW 82.32.805 and 82.32.808 do not apply 26
to this act.27
NEW SECTION. Sec. 4. This act takes effect October 1, 2026.28
--- END ---
p. 19 SB 5980