Whammy Tax Hike Set to Hit Over 90K WA Businesses Oct. 1st.

The Washington State Legislature, spearheaded by Democrats, pushed through the biggest package of tax hikes in state history, and it was signed off on by Gov. Bob  Ferguson. Now, the hikes are ready to go into effect.

   Over 90K professional businesses will be hit hard.

Engrossed Senate Bill (ESSB) 5814 will extend the state's standard retail sales tax rate of 6.5 percent to these businesses, plus local rates which vary between 1.4 and 4 percent, so most  will see a tax hike of at least 7-10 percent.

These businesses include, according to the WA State Department of Revenue:

• "Information technology services
• Custom website development services
• Investigation, security, and armored car services
• Temporary staffing services
• Advertising services
• Live presentations
• Sales of custom software and customization of prewritten software
• Modification of digital automated services (DAS) exclusions."

Many of these are tech firms, on which a lot of the state economy is built. Many businesses in the Puget Sound area will be affected, including Microsoft, Amazon and others.

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Many economic  experts and business leaders warn ESSB 5814 will drive businesses, small and large, out of state. In May, the Washington Policy Center warned about this saying in part:

"As Kelly Fukai of the Washington Technology Industry Association noted, “We’re very concerned about how this will impact our companies, and if folks will make decisions to either grow outside of Washington state, or whether or not they’ll even start a company here”.