Exemption
Digital automated service - Internet and Internet access
Retail Sales & Use Tax exemption · RCW 82.04.192(3)(b)(vii) · enacted 2009
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 82.04.192(3)(b)(vii)
- Study reference
- E1557-1
- Tax type
- Retail Sales & Use Tax
- Preference type
- Exemption
- Category
- Individuals
- Year enacted
- 2009
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 82.12 · FY 2026: 96.73 · FY 2027: 104.43
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 146.69 · FY 2026: 172.77 · FY 2027: 186.53
- Taxpayer savings — local ($M)
- FY 2024: 82.98 · FY 2025: 89.59 · FY 2026: 96.73 · FY 2027: 104.43
- Taxpayer savings — state ($M)
- FY 2024: 184.52 · FY 2025: 199.22 · FY 2026: 215.09 · FY 2027: 232.22
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.192(3)(b)(vii) - Digital automated service - Internet and Internet access Description Digital automated services are retail sales. However, the definition of digital automated services excludes the internet and internet access. As a result, charges for the internet and internet access are not subject to sales tax. Purpose To decrease costs for internet and internet services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $184.520 $199.220 $215.090 $232.220 Local Taxes $82.980 $89.590 $96.730 $104.430 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $146.690 $172.770 $186.530 Local Taxes $0.000 $82.120 $96.730 $104.430 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the B&O growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. - Estimate reflects the gain from repealing the sales tax exemption less the B&O chan
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This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: