Exemption
Digital goods created for business needs and not for sale
Retail Sales & Use Tax exemption · RCW 82.12.0208(4)(a)(iii) · enacted 2009
Details
- Citation
- RCW 82.12.0208(4)(a)(iii)
- Study reference
- E1718-1
- 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- Revenue if repealed — local ($M)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- Revenue if repealed — state ($M)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
82.12.0208(4)(a)(iii) - Digital goods created for business needs and not for sale Description The use tax is not imposed upon the use of digital goods that are created solely for the business needs of the person who created them, if they are not the type of digital good that is offered for sale. Excluded digital goods include business email communications. 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 Indeterminate Indeterminate Indeterminate Indeterminate Repeal of Repealing this exemption would not increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 Indeterminate Indeterminate Indeterminate Local Taxes $0.000 Indeterminate Indeterminate Indeterminate Assumptions The revenue impact of this exemption is indeterminate. Digital goods created for business needs and not for sale is unknown. Data Sources None Addi
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