Senate Bill 5980 (prefiled 01/05/26, read 01/12/26) amends Washington tax law definitions by changing RCW 82.04.050 and RCW 82.04.192 and by creating a new unnamed section. The bill expressly seeks to exempt live presentations from retail sales and use tax and adds and revises many definitions and inclusions/exclusions in the statutory definition of "sale at retail" or "retail sale," including detailed rules for services, recreational and athletic activities, digital goods, digital codes, digital automated services, subscription radio/television services, extended warranties, data processing, and software. It also adds a definition for "digital audio works" and begins but does not complete a definition for "digital audiovisual works." The bill states that RCW 82.32.805 and 82.32.808 do not apply to this act. This is a definitional and tax-procedural change to existing law rather than a criminal or penalty change: it creates exemptions and exclusions and clarifies taxable treatment for many categories of services and electronically transferred products. The act takes effect October 1, 2026. Some text is missing from the provided excerpts: the full text of the new section, the complete amendment to RCW 82.04.192 (including the full "digital audiovisual works" definition), and portions of the amended RCW 82.04.050 are incomplete in the materials provided.

If enacted, the bill clarifies and reshapes what digital and recreational transactions count as taxable retail sales: live, real-time online presentations (interactive lectures, seminars, workshops, courses) are carved out of the new definition of “digital automated service,” while a wide range of admissions, activity fees, and many digitally delivered products and services are more clearly defined as either taxable or explicitly excluded. Practically, this will reduce sales-tax exposure and collection duties for people and firms that run interactive live online presentations, remove ambiguity for sellers of digital goods and software about when to charge tax, and increase or confirm tax collection duties for many operators of recreational and entertainment activities (amusement parks, guided trips, sports and fitness facilities, certain instruction and facility fees, and some event organizers), shifting administrative responsibilities and potentially raising costs for some customers. The changes affect online presenters and webinar/course vendors, software and digital-product sellers, broadcasters, travel agents, photographers, schools and accredited higher-education providers, fitness and recreation businesses, and grantees/farmers referenced in the statute. The act becomes effective October 1, 2026; however, the extract does not include the full amended language for some sections, so the precise boundary lines for tax liability and the net impact on state and local tax revenue remain uncertain and will depend on the complete statutory text and administrative guidance.