The bill amends RCW 82.04.050 to exempt temporary staffing services from the retail sales tax in Washington State by removing their definition from the list of taxable personal, business, or professional services. This exemption is intended to reduce the tax burden on businesses that rely on temporary staffing, thereby promoting the use of these services to address workforce shortages. Additionally, the bill updates and clarifies the definitions of "sale at retail" and "retail sale," modifying language related to other service categories such as advertising and live presentations while maintaining the overall structure of the law.

Moreover, the bill expands the definition of "retail sale" to include various digital goods, digital codes, and digital automated services, while specifying that certain services associated with these digital products are also included. It clarifies that retail sales do not cover services like live presentations and advertising when transactions occur between affiliated groups. The bill also outlines specific activities considered retail sales, such as recreational activities, while excluding certain charges related to educational institutions and nonprofit organizations. A new section indicates that existing laws, RCW 82.32.805 and 82.32.808, do not apply to this act, establishing a distinct regulatory framework for the defined retail sales and services, and modernizing the tax code to better align with the digital marketplace and recreational service industry.

Statutes affected:
Original bill: 82.04.050