Ed Orcutt — Addressed as Ranking Member Orcutt by the witness.
Ed Orcutt — Likely intended reference to the Ranking Member; transcript says 'Ranking Member Workup,' which appears to be an error.
Ed Orcutt — Member Orcutt is addressed at the start of the presentation.
Ed Orcutt — Representative Ed Orcutt asked a series of related questions about the bill’s tax implications, focusing on the retailing B&O rate, the fiscal note for 5814, and whether school district continuing education presentations, guest speakers, and similar nonprofit-related scenarios were included in the revenue assumptions. He specifically asked whether the fiscal note assumed those individuals or entities would be taxed.
Ed Orcutt — The chair introduced Representative Orcutt as the next questioner, and Representative Orcutt then asked a follow-up question clarifying that he was only asking about requests replied to since October 1st, not requests received since that date.
Ed Orcutt — Ed Orcutt is referenced as the Ranking Member, with transcript variants corrected to his name.
HB2081 — House Bill 2081 is discussed as part of the 2025 session’s Antio-related legislation, with additional detail that it would codify much of DOR’s guidance and extend the B&O deduction to nonprofits.
HB2081 — Referenced as the bill that revisited and clarified the statute after Antio.
SB5167 — Senate Bill 5167 is discussed as the operating budget proviso that directs the Department of Revenue to implement an expanded voluntary disclosure program.
Cyndy Jacobsen — Representative Cyndy Jacobsen questioned whether businesses had historically exceeded the 5% threshold and whether the Department of Revenue had changed its interpretation of incidental investment revenue before the Antio case. After the witness responded that there had not been a change, she followed up by asking why the issue had not arisen earlier and again referenced the 5% threshold.
Cyndy Jacobsen — The member asks a follow-up question about online tax preparation and other fintech providers.
Cyndy Jacobsen — The member asks whether the statute allows sanctions such as license removal for preparers.
Cyndy Jacobsen — Rep. Jacobson is thanked for her questions.
Cyndy Jacobsen — Representative Cyndy Jacobsen was addressed by the chair and then asked whether there is a tax burden or taxation point at which businesses or residents would consider relocating. Her question led into discussion of whether taxes create a tipping point that could encourage relocation and create a competitive disadvantage.
Steve Ewing — Steve Ewing is introduced as the next presenter on the Working Family Tax Credit, then begins his remarks by identifying himself with the Department of Revenue and introducing the update.
Kevin Dixon — Kevin Dixon is introduced as joining Steve Ewing for the Working Family Tax Credit update and is identified as the assistant director overseeing the Working Families Tax Credit Division.
HB1297 — Referenced as the bill that established the Working Families Tax Credit framework and stated objectives.
Sharon Tomiko Santos — Representative Sharon Tomiko Santos is called on and asks about patterns among fraud victims, especially in immigrant communities and among people who do not speak English as their first language. She connects the issue to prior legislative work and suggests that, in addition to statutory remedies, better advertising and public awareness of people's rights may help address fraud.
Sharon Tomiko Santos — Rep. Santos is thanked for her questions.
Sharon Tomiko Santos — Representative Sharon Tomiko Santos questions the superintendent about the purpose and consequences of the legislation, asking how it will affect public education, what happens to students—especially special education students—if the bill is not corrected, and referencing prior experience to ask about Clover Park’s compassionate care policy status.
SB5814 — The committee/chair introduces the next section focused on implementation of Engrossed Substitute Senate Bill 5814 (ESSB 5814).
SB5814 — The discussion introduces Senate Bill 5814 in the context of sales tax, explaining the preexisting sales tax framework and how SB 5814 expanded it. The conversation then connects the bill to the industries and categories of businesses affected, including those participating in listening sessions and surveys.
SB5814 — Referenced as the law for which taxpayers seek compliance guidance through ruling requests.
SB5814 — The bill's fiscal note is discussed, with concern that it may no longer be accurate given increased requests for services.
SB5814 — The department says it is not aware of any revision to the expenditure estimate for implementing the bill.
SB5814 — The department says it is not aware of any revision to its expenditures for implementing the bill.
SB5814 — The panel discussion is framed around implementation of the bill.
SB5814 — The chair explains the panels are about how implementation of the bill changed taxpayers' lives after October 1st.
SB5814 — Expedia's concerns are directed at the bill's digital advertising provisions.
SB5814 — The digital advertising portion of the bill is described as highly impactful and costly.
SB5814 — Witness says there are real questions about what is taxable under the bill.
SB5814 — Senate Bill 5814 is discussed as increasing costs associated with construction training and continuing education, with speakers emphasizing its broader impact on people pursuing construction careers, including higher expenses for license renewal and career pathway entry.
SB5814 — Senate Bill 5814 is discussed as a harmful measure with broad negative financial consequences. Speakers say it was introduced in April and signed into law on May 20th, but interim guidelines were not released until August 29th, creating budget-planning problems. They argue the bill effectively passes new tax burdens and service costs on to school districts, taking back about $1.2 million in funding gains and representing a step backward. The discussion also extends to impacts on nonprofit arts organizations and the cultural sector, with one organization estimating about $500,000 in annual costs, largely driven by the digital advertising tax.
Kate Armstrong — Named as a contact for arranging presentations on 5814.
Larry Springer — Representative Springer is introduced as the next questioner, then asks whether the department has updated its fiscal note or implementation cost estimate in light of increased monthly requests. The discussion continues with a response addressing that question, and Springer adds that the committee may need to do further triage later to determine the bill’s actual exposure.
Stephanie Guilfeather — Stephanie Guilfeather, Expedia’s Director of Indirect Tax, is introduced as the first witness and then testifies about Expedia’s concerns with bill 5814, focusing on its digital advertising provisions. She says the issue should be addressed in statute rather than left to agency guidance, and later explains that Expedia opposed the policy strongly enough to send a rare veto request to the governor because of its complexity, legal uncertainty, and negative impact on Washington businesses compared with out-of-state competitors. A later reference simply points back to her earlier remarks about the burden on Washington-based businesses.
Stephen King — Introduced as Senior Manager of Transaction Taxes for T-Mobile and panel witness.
Helene Sigman — Introduced as President of the Construction Industry Training Council and panel witness.
Steve — The chair asks whether Steve should go first on the panel.
Steve King — Steve King of T-Mobile testifies about the impact of Washington’s new tax provisions on his company and other in-state businesses. He explains that T-Mobile spent thousands of hours trying to determine the scope of the new taxes because the statute and Department of Revenue guidance are ambiguous, especially around IT training, technical support, consulting, and digital automated services. He argues the tax burden falls disproportionately on Washington-based businesses like T-Mobile, which have more in-state IT, marketing, and back-office functions than out-of-state competitors such as Verizon. He also notes that the tax change creates significant compliance and financial reporting burdens, may increase T-Mobile’s sales and use tax exposure substantially, and could eventually influence business decisions about where work is located. He closes by comparing Washington’s approach with other states, noting Maryland’s narrower business services tax as a contrast.
SB5814 — SB 5814 is discussed as the cause of implementation and interpretation issues that have led to higher tuition rates and made classes more expensive for students in CITC programs.
Helene Sigmund — Helene Sigmund introduced herself as the president of the Construction Industry Training Council of Washington and described CITC as a statewide training provider and apprenticeship sponsor.
Rob Chase — Asked whether other states have passed legislation similar to SB 5814.
Stephanie — Stephanie was invited to weigh in on states that tax sales and services and then agreed that Washington has strengths, including a strong workforce, but said the state’s tax climate has been tough lately. She reiterated that Washington still has business advantages despite those tax concerns.
Shaun Scott — Asked panelists to discuss the advantages of doing business in Washington and how the tax policy fits with those benefits.
T-Mobile — Described as benefiting from Washington's technical expertise and workforce.
Ron Burner / Ron Banner — The chair introduced the next panel and corrected the superintendent's name from Burner to Banner.
Rose Noble — Rose Noble was introduced as being online and serving as president and CEO of Visit Spokane.