Washington Digital Agencies Criticize New Sales Tax Law, Legal Challenges Expected Over Discriminatory Practices

• Digital agencies in Washington criticize a new sales tax law affecting their industry.
• Curtis Costner, president of Sands Costner, expresses concern about the impact on local businesses.
• The law requires digital service companies to collect sales tax starting in October.
• John Rubino from GreenRubino worries about the effect on local clients, including nonprofits.
• The bill was introduced and passed quickly, leaving some feeling blindsided.
• The tax applies to digital advertising but excludes physical ads.
• Legal challenges are expected due to potential conflicts with the Internet Tax Freedom Act.
• Washington is one of the few states to tax digital ads, with Maryland having a similar law under litigation.
• Lawmakers argue the bill adjusts the tax system for a service-based economy.

Source: geekwire.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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