Services tax penalty waiver

AN ACT Relating to providing a limited waiver of interest and 1
penalties for taxpayers inadvertently failing to collect and remit 2
sales and use taxes on select services subject to sales and use taxes 3
under chapter 422, Laws of 2025; adding a new section to chapter 4
82.32 RCW; and providing an expiration date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. A new section is added to chapter 82.32 7
RCW to read as follows: 8
(1) Except as otherwise provided in subsections (2) through (5) 9
of this section, the department shall waive all penalties and 10
interest otherwise due under this chapter if all of the following 11
circumstances are met: 12
(a) The penalties and interest are imposed with respect to: (i) 13
State and local sales and use taxes; and (ii) tax liability that is a 14
result of a failure to collect sales and use taxes on the additional 15
select services subject to sales and use taxes as provided in section 16
101, chapter 422, Laws of 2025; 17
(b) The taxpayer files with the department any amended or 18
outstanding returns covering tax liabilities with respect to which a 19
penalty and interest waiver under this section is requested;20
S-3782.1
SENATE BILL 6033
State of Washington 69th Legislature 2026 Regular Session
By Senator Gildon
Prefiled 01/08/26.
p. 1 SB 6033
(c) The taxpayer remits full payment to the department of the 1
balance due on all tax liabilities for which a penalty and interest 2
waiver under this section is requested; 3
(d) The taxpayer has timely filed and remitted payment on all tax 4
returns due for a period of 36 months immediately preceding the 5
period covered by the return for which the waiver is being requested; 6
and 7
(e) The taxpayer must never have had an evasion penalty assessed 8
against the taxpayer by the department under RCW 82.32.090 or a 9
penalty assessed against the taxpayer by the department under RCW 10
82.32.291 for misusing a reseller permit or resale certificate.11
(2) The taxpayer must submit a completed application for a 12
penalty and interest waiver under this section in a form and manner 13
prescribed by the department. 14
(3) All tax liability reported and paid as required in subsection 15
(1) of this section is subject to verification by the department as 16
provided in RCW 82.32.050. This section does not preclude the 17
assessment of taxes, penalties, and interest with respect to any 18
amounts determined by the department to have been underpaid for any 19
tax period for which the taxpayer previously received penalty or 20
interest relief under this section. 21
(4) Nothing in this section may be construed as requiring a 22
taxpayer to have first paid any penalty or interest for which a 23
waiver is sought under this section. 24
(5) This section does not apply to sales and use tax liabilities 25
for tax reporting periods beginning on or after January 1, 2028.26
(6) This section expires January 1, 2030. 27
--- END ---
p. 2 SB 6033