The bill amends Washington state law to redefine "sale at retail" or "retail sale" by exempting live presentations, such as lectures, seminars, workshops, or courses, from retail sales and use tax. This change removes the previous inclusion of these live presentations from taxable services, clarifying that charges for them, whether attended in person or online, will not be subject to sales tax. Additionally, the bill makes various amendments to the definitions and categories of taxable services and goods, particularly concerning athletic and fitness facilities, aiming to streamline the tax code and provide clearer guidelines for businesses and consumers.

Furthermore, the bill introduces new definitions for "digital audio works" and "digital audiovisual works," while refining the definition of "digital automated service." It specifies that certain financial transactions, telecommunications services, and online educational programs are excluded from this definition. The bill also clarifies that live presentations are not classified as digital automated services and updates the definitions of "digital goods" and "digital code." It establishes that certain existing laws do not apply to this act, indicating a shift in the regulation of digital products and services, with the new provisions set to take effect on October 1, 2026.

Statutes affected:
Original bill: 82.04.050, 82.04.192