VATupdate

Share this post on

Washington Governor Enacts Major Tax Reforms Impacting Retail Sales, Vehicles, and Services

  • Washington governor signed three tax-related bills impacting retail sales tax
  • Senate Bill 5794 repeals sales tax exemption on precious metal bullion starting January 1, 2026
  • Senate Bill 5801 changes taxes on motor vehicle sales and rentals
  • Sales tax on car rentals increases to 11.9 percent in 2026, decreases to 9.9 percent in 2027
  • Additional sales tax on motor vehicle sales increases to 0.5 percent in 2026
  • Tire fee increases to 5 dollars per tire in 2026
  • New taxes on peer-to-peer car sharing, recreation vessels, high-value motor vehicles, and luxury aircrafts
  • Senate Bill 5814 expands services subject to sales tax
  • Includes custom software, IT training, technical support, data services, security, staffing, advertising, live presentations, digital services
  • Exemption created for telehealth and telemedicine
  • Provisions on prepayment of sales taxes and cigarette tax increase were removed from the final bill

Source: sovos.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.

Sponsors:

Pincvision
VATIT Compliance

Advertisements:

  • Exchange Summit