As of 10/1/2025, there is a wide range of new taxes and fees that are impacting businesses and nonprofit organizations in Washington State. These new taxes are a result of Engrossed Substitute Senate Bill 5814, which added a wide variety of new activities to the definition of retail sales. There has not been a lot of information about these new taxes, and many are being caught off guard.
What does this mean for Nonprofit Association of Washington?:
- We have received information from the Department of Revenue confirming that many of our “products” are now subject to sales tax. This includes our in-person training, virtual training, on-demand learning, conferences, and workshops.
- You will notice that a sales tax is added to our offerings. This tax rate is based on the location of the customer at the time of delivery of the service or product (The DOR acknowledges that this will be a challenge for many businesses and organizations to do, logistically).
What does this mean for the nonprofit sector?:
- This will mean an increase in costs for nonprofit organizations across the state, during a time when many organizations are already struggling financially. There are now taxes on many services and products that nonprofits need. This includes consultants, training and development, technology tools, licenses and permits, advertising services, storage facilities, temporary staffing, and many other necessities.
What can we do?:
- At this time, there is still a great deal of confusion and a lack of understanding of these new tax requirements. You can request assistance with specific tax questions from the WA Department of Revenue and request a binding tax ruling.
- We, at NAWA, are working to host a webinar with the Department of Revenue for them to speak directly to the nonprofit community and answer questions.
- NAWA is exploring ways that we can use our policy and advocacy work to possibly seek a tax exemption for nonprofits. There are large corporations that are suing the government or lobbying to get exemptions for the parts that impact their specific sectors, and we as nonprofits need to also advocate for exemptions or changes.
- At this time, it is important for organizations to consult with tax professionals to ensure that they are in compliance.