New sales tax on services in Washington takes effect Wednesday

A contentious new sales tax on services that Democratic state lawmakers relied on to pay for Washington’s latest budget is set to take effect Wednesday.

Senate Bill 5814 is one of the biggest moneymakers used to bring in an estimated $3.6 billion over the next two years to fill a shortfall in the operating budget. This law is expected to fuel $1.1 billion in the two-year budget that began July 1, and $2.6 billion over four years. Hundreds of millions of dollars will also flow to local governments, as they get a share of state sales tax proceeds.

But a key piece of the new tax law is in question.

Cable juggernaut Comcast believes the measure’s sales tax on advertising services is illegal and is suing to get it overturned. The state attorney general’s office is expected to respond to the lawsuit in Thurston County Superior Court in the coming weeks. It could be months before a judge weighs in on the provision’s future.

https://www.heraldnet.com/northwest/new-sales-tax-on-services-in-washington-takes-effect-wednesday/