// 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- Revenue if repealed — local ($M)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- Revenue if repealed — state ($M)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
Det. No. 14-0243, 35 WTD 426 (September 30, 2016) 432 request of any particular Client after that Client has signed the Service Agreement, as required by RCW 82.04.192(3)(b) and Rule 15503(302)(d). Taxpayer’s provision of digital automated service does not involve the application of human effort after the Client requested the service and the exception under RCW 82.04.192(3)(b) does not apply. Taxpayer’s petition is denied as to this issue Next, Taxpayer argues that because the Research Library is not an online searchable database (an “OSD”), it is not a digital automated service. Even if we concede that the Research Library is not an OSD, that does not preclude it from being a digital automated service. Being classified as an OSD is not a requirement for being a digital automated service under RCW 82.04.192. However, in this case, the Research Library does qualify as an OSD. With respect to OSDs, the Department issued a Special Notice on November 2, 2010, which provides, in part: The Department has determined that online searchable databases (OSD) are digital automated services (DAS). As such, they do not qualify for the exemption provided for digital goods used solely for a busine
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: