State lawmakers pass Washington tax on ad services

Lawmakers in Washington state have approved a bill that would require ad agencies to collect sales tax on services such as creating and placing digital ads, analyzing their performance and planning online campaigns.

The measure (SB 5814) was passed late last week by a vote of 26-22 in the state Senate and 50-47 in the House.

If signed by Governor Bob Ferguson, the bill would require Washington agencies (and other businesses that assist advertisers) to collect sales tax likely ranging from 7.5% to 10.6% on “advertising services.”

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