Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Impact of Washington’s Law Changes for Professional Service Firms

By Bonnie Susmano
October 31, 2025

Washington state expanded the breadth of its sales tax laws, effective Oct. 1, 2025, which could catch professional service firms off guard. While traditional legal and accounting services are exempt from sales tax, the ripple effects of this change could still substantially impact professional services firms, albeit in subtle but significant ways.

What’s Changing?


The new legislation, ESSB 5814, broadens the scope of its retail sales tax to include service categories that were not previously taxed. These include, but are not limited to:

  • IT support
  • Software customization
  • Advertising and marketing services
  • Live presentations (e.g., paid webinars and workshops)
  • Temporary staffing and security services

Washington state will now tax these services under Washington’s Retailing B&O excise and retail sales tax.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.