Exemption
Digital automated service - storage, hosting and backup
Retail Sales & Use Tax exemption · RCW 82.04.192(3)(b)(xiv) · 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)(xiv)
- Study reference
- E1562-1
- 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- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 38.56 · FY 2026: 43.94 · FY 2027: 46.03
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 36.57 · FY 2026: 43.27 · FY 2027: 47.04
- Taxpayer savings — local ($M)
- FY 2024: 40.51 · FY 2025: 42.07 · FY 2026: 43.94 · FY 2027: 46.03
- Taxpayer savings — state ($M)
- FY 2024: 90.08 · FY 2025: 93.54 · FY 2026: 97.7 · FY 2027: 102.35
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.192(3)(b)(xiv) - Digital automated service - storage, hosting and backup Description Digital automated services are classified as retail sales, for the purpose of the B&O tax and the sales and use taxes. However, the mere storage of digital products, digital codes, computer software, or master copies of software is excluded from this definition and is instead subject to the service and other activities 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 $90.080 $93.540 $97.700 $102.350 Local Taxes $40.510 $42.070 $43.940 $46.030 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $36.570 $43.270 $47.040 Local Taxes $0.000 $38.560 $43.940 $46.030 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the services B&O taxable activity growth rates refl
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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: