Exemption
Digital automated service - online marketplace activites and services
Retail Sales & Use Tax exemption · RCW 82.04.192(3)(b)(xii) · 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)(xii)
- Study reference
- E1560-1
- 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- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 112.78 · FY 2026: 128.14 · FY 2027: 133.63
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 195.214 · FY 2026: 222.179 · FY 2027: 232.077
- Taxpayer savings — local ($M)
- FY 2024: 118.28 · FY 2025: 123.03 · FY 2026: 128.14 · FY 2027: 133.63
- Taxpayer savings — state ($M)
- FY 2024: 263.01 · FY 2025: 273.58 · FY 2026: 284.95 · FY 2027: 297.14
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.192(3)(b)(xii) - Digital automated service - online marketplace activities and services Description Digital automated services are retail sales. However, the definition of digital automated services excludes online marketplace related activities, which are services that allow the recipient of the service to make online sales of products or services, digital or otherwise, using provider’s web site. Services using the recipient’s website are also excluded, but only if the provider’s technology is used to create or host the recipient’s site, or to process orders from customers using the recipient’s site. As a result, income from these activities is not subject to sales tax. Purpose To decrease taxes for online marketplace activities and services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $263.010 $273.580 $284.950 $297.140 Local Taxes $118.280 $123.030 $128.140 $133.630 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $195.214 $222.179 $232.077 Local Taxes $0.000 $112.780 $128.140 $133.630 Assumptions - This repeal
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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: