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Legislative Review – Lawmakers Debate New Taxes on Digital Services, Nicotine & Business Exemptions

Two major tax proposals stir strong debate in Olympia as lawmakers confront Washington State’s growing budget deficit.


Senate Bill 5814 – A sweeping tax package proposes:

New taxes on digital services like online advertising and data processing

Higher cigarette taxes (+$2 per pack)

A new tax on synthetic nicotine products

Prepaid sales tax requirements for large businesses


Supporters argue it modernizes the tax code to fund critical services. Opponents warn of higher consumer costs and potential legal challenges.


Senate Bill 5794 – Aimed at cleaning up outdated tax breaks, this bill would roll back exemptions for:

Credit unions

Gold/precious metal dealers

Prescription drug resellers

Long-term self-storage rentals


Supporters say it’s a move toward fairness and fiscal responsibility. Industry critics say it could drive jobs out of state.


Public testimony from small businesses, local leaders, and union members underscores the high stakes for Washington residents.


(4/21/25)