Exclusion
Competitive telephone service
Retail Sales & Use Tax exclusion · RCW 82.04.050(1)(a)(v) · enacted 1981
No 2025–26 change identified — this preference was reviewed against the 2025–26 session laws and is unchanged from the 2024 study baseline.
Details
- Citation
- RCW 82.04.050(1)(a)(v)
- Study reference
- E1535-1
- Tax type
- Retail Sales & Use Tax
- Preference type
- Exclusion
- Category
- Individuals
- Year enacted
- 1981
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 24.97 · FY 2026: 30.69 · FY 2027: 34.58
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 55.52 · FY 2026: 68.24 · FY 2027: 76.89
- Taxpayer savings — local ($M)
- FY 2024: 24.18 · FY 2025: 27.24 · FY 2026: 30.69 · FY 2027: 34.58
- Taxpayer savings — state ($M)
- FY 2024: 53.76 · FY 2025: 60.57 · FY 2026: 68.24 · FY 2027: 76.89
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.050(1)(a)(v) - Competitive telephone service Description Purchases of property provided to consumers as part of a competitive telephone service are exempt from retail sales and use tax. Purpose Avoids taxing the same product twice. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $53.760 $60.570 $68.240 $76.890 Local Taxes $24.180 $27.240 $30.690 $34.580 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $55.520 $68.240 $76.890 Local Taxes $0.000 $24.970 $30.690 $34.580 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the compound growth rate of telecommunication expenditures between 2019 and 2022. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. - Property provided to consumers as part of a competitive telephone service includes telephones, routers, and modems. - Approximately 25% of total telecommunication expenditures are for resale. Data Sources - Department of Revenue, Excise tax data - IMPLAN
Does this apply to you?
This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: