Washington’s expanded sales tax impacts more than 90,000 entities, including nonprofits, adding financial strain as services like advertising become taxable.
MOUNTLAKE TERRACE, Wash. — A sweeping new sales tax takes effect Wednesday in Washington, impacting more than 90,000 businesses and nonprofits across the state. Among those affected are nonprofit organizations working to help vulnerable communities.
The expanded tax, described as the biggest tax increase in Washington history, treats services as taxable goods for the first time. Starting Wednesday, nonprofits will pay taxes of up to 10% on services ranging from advertising to auctioneers — services that were previously tax-free.
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