Exemption
Digital automated service - primarily human effort
Retail Sales & Use Tax exemption · RCW 82.04.192(3)(b)(i) · enacted 2009
Before ESSB 5814
Services requiring primarily human effort were excluded from the definition of a "digital automated service" (DAS) under RCW 82.04.192(3)(b)(i), so they were not a retail sale and were reported under the service & other activities B&O classification only (2024 DOR Tax Exemption Study baseline).
Source: 2024 DOR Tax Exemption Study · RCW 82.04.192(3)(b)(i)
After
Effective October 1, 2025, ESSB 5814 eliminated the general "primarily human effort" DAS exclusion, so services that relied on it may now be taxable retail services subject to retail sales/use tax and retailing B&O. The exclusion is retained only for sales between members of an affiliated group. Confirm the specific service against ESSB 5814 and DOR's ESSB 5814 DAS interim guidance.
Source: ESSB 5814 (2025)
Details
- Citation
- RCW 82.04.192(3)(b)(i)
- Study reference
- E1550-1
- Tax type
- Retail Sales & Use Tax
- Preference type
- Exemption
- Category
- Business
- Year enacted
- 2009
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: I · FY 2026: I · FY 2027: I
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: I · FY 2026: I · FY 2027: I
- Taxpayer savings — local ($M)
- FY 2024: I · FY 2025: I · FY 2026: I · FY 2027: I
- Taxpayer savings — state ($M)
- FY 2024: I · FY 2025: I · FY 2026: I · FY 2027: I
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.192(3)(b)(i) - Digital automated service - primarily human effort Description Digital automated services are classified as retail sales and are subject to retailing B&O tax. However, digital goods that primarily represent the application of human effort and the human effort originated after the customer requested the service, such as a digitally delivered engineering report prepared primarily through the application of an engineer’s effort, are excluded from this definition of digital goods and are instead subject to the service and other activities B&O tax. This exclusion does not apply to amounts received by photographers for taking photographs transferred digitally to the customer if the customer is the end user. These payments are considered to be for the sale of digital goods and are subject to sales taxes and retailing B&O tax. Purpose To protect the sales and use taxes base, establish certainty in the tax code, maintain conformity with the streamlined sales and use taxes agreement, and encourage economic development. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes Indeterminate Indeterminate Indeterminate Indeterminate Local Taxes Indeterm
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: