We thought I could provide a brief update on where things stand with the WA State Sales Tax on Advertising Services…and what else we’re doing in this space.

Last year we sent emails to clients letting them know we would start enforcing the application of sales tax on applicable clients as of April 1, 2026. The WA Department of Revenue allowed existing contracts to delay the implementation until that date.

However, many of the large media vendors (LinkedIn/Microsoft, Meta, Google) have chosen to ignore that guidance from WA DOR and have started implementing the sales tax on media as of January 1, 2026. As a result, we will now be charging sales tax on WA media as of January 1, 2026. We will not, however, be charging sales tax on our services until April 1, 2026. Sort of a mixed bag there, but by GR not charging sales tax on our services continues to help clients delay paying some of the tax burden for a few more months.

There’s lots behind the scenes related to other taxes, such as B&O tax…which is charged differently on sales taxable and non-sales taxable services and media. It’s quite confusing. And Mike is continuing to stay on top of these things to make sure we are compliant.

Additionally, I am continuing advocacy for our clients, for us, and for our industry. For example, on Tuesday, January 27^th I will be going to Olympia with AWB (Association of Washington Business) to meet with legislators/policymakers in the state capitol and learn more about tax policies and express our concerns and opinions about their policies. Everyone from Gov. Ferguson, Attorney General Nick Brown, state senators, and more will be there during the luncheon, the legislative reception, and meetings with direct legislators. As you can imagine…I have a lot to say 😊.

I think that’s enough tax talk for today, but Stacia, Mike, and I thought it would be a good idea to send out a quick new year update on the state of our sales tax, B&O tax, and more proposed taxes coming down from this upcoming legislative session (starting January 12^th).

As always, if you have any questions…please don’t hesitate to reach out to any of us. We’re happy to tell you everything we know!!

John