House Bill 2121 (H-2522.1) amends RCW 82.04.050 and creates a new section. The bill replaces and expands the statutory definition of "sale at retail"/"retail sale," listing many categories of tangible personal property, services, and charges that are included or excluded for Washington sales and use tax purposes. The amendment defines taxable business and personal services (including many information technology, advertising, security, temporary staffing, and athletic/fitness facility charges), clarifies treatment of digital goods and software access, and adds multiple specific exclusions and definitions (for example for athletic or fitness facilities, physical therapy, extended warranties, data processing, and certain agricultural inputs). Legally, this is a modification of existing tax law and the creation of a new statutory section; it is a definitional and substantive tax change rather than a criminal or penalty change. The text expressly treats certain sales between affiliated group members and certain sales to nonprofits, schools regulated under Title 28A or chapter 72.40 RCW, or other specified educational institutions as not "sale at retail" for listed subsections, and it excludes two statutes (RCW 82.32.805 and RCW 82.32.808) from applying to the act. The bill also contains numerous detail provisions about when charges for access, instruction, rentals, operator-provided equipment, and digital services are taxable. The provided excerpts are incomplete: portions cut off mid-sentence, subsection (7) referenced is not shown, and the specific exemption language implementing the stated purpose of "exempting nonprofits and schools from certain sales and use taxes on services" is not fully visible. No effective dates, penalty changes, or full implementation procedures appear in the extracted text.

If enacted, the bill rewrites the tax definition of "sale at retail" to list many specific services and situations that are treated as taxable sales (including advertising, many IT and digital services, athletic facility charges, and a long list of recreational admissions and rentals) while also carving out numerous exclusions (for farmers, certain federal and transit work, some educational and nonprofit uses, and other specific situations). Practically, businesses that sell services listed in the statute will need to evaluate whether particular charges are taxable or excluded and may have to change billing and tax-collection practices; operators of athletic/fitness facilities, software and digital sellers, advertisers, event and recreation operators, landlords, employers who provide facility access, and health care or therapy providers are among those most directly affected. The bill also expressly treats many sales to nonprofits, schools regulated under Title 28A or chapter 72.40, and certain educational institutions as not "sale at retail" for specified subsections, which would likely reduce sales and use tax costs for those nonprofit and school customers when buying covered services. Key implementation details are missing from the extracted text — the precise exemption language, which subsections are covered, any effective dates, and how the exclusions interact with other parts of the tax code are not shown — so the exact scope of savings, timing, and administrative changes remains uncertain.