Sales Tax Changes on Classes & Events for Washington State Residents
This post has been updated as of 1.16.26.
The 2025 Washington State Legislature passed Senate Bill (ESSB) 5814, which added new business activities to the definition of retail sales. As a result, businesses and nonprofits will be required to begin collecting sales tax on live presentations, including online and in-person classes, seminars and workshops, starting Oct. 1, 2025.
This statewide law, passed to help address a projected $16 billion state budget deficit, applies to all cultural organizations, including nonprofits like Clarion West.
Free programs, performances, readings, author events, fundraising events, and similar cultural programming generally fall outside this definition and are not subject to sales tax.
What this means for the Clarion West community:
If you are not from WA State, you will not see any changes. If you live in WA State, you will be charged the WA State & Seattle Combined Sales Tax of 10.35% at registration for all live classes that you register for (live class definitions below).
If you live in WA State, but not in Seattle, our team will independently confirm the combined sales tax rate in the city where you live. The difference between the amount charged at your registration and the sales tax for your location will be sent to you and you will be given the option to:
- Donate the difference to Clarion West;
- Request a refund for the difference; or
- Clarion West will remit the entire amount collected to the Department of Revenue.
Classes and Workshops (both online & in-person)
All in-person and online classes and workshops will now be subject to sales tax for people located in Washington State.
In-person classes and live presentations held in Seattle will be taxed at the Seattle sales tax rate (10.35% as of October 1st, 2025).
Online Classes & Workshops will be taxed based on your billing location. Out-of-state residents will not be charged a sales tax for online programs.
Free programs will not be subject to sales tax.
Events (both online & in-person)
Some of our in-person and online author events will now be subject to sales tax, including:
- Ticketed events that aim to educate—including craft talks, panels, and workshop events—will now include sales tax.
- Non-instructional ticketed events, such as readings and fundraising events will not be taxed.
- Free instructional events will not be subject to sales tax.
On-Demand Classes
The on-demand library will not be subject to sales tax.
Gift Certificates
Purchasing of gift certificates will not be subject to sales tax. However, purchases made using gift certificates will be subject to sales tax for all classes and events qualifying as live presentation.
Refunds
If you receive a refund for a class or event purchased after 10/01/25, sales taxes will also be refunded.
Why is there a sales tax on your class or workshop?
Starting October 1, 2025, Engrossed Substitute Senate Bill 5814, Laws of 2025, Chapter 422 (ESSB 5814) makes live presentations a “retail sale” subject to Washington’s retailing business and occupation (B&O) tax and retail sales tax when sold to a consumer.
Unfortunately, nonprofit organizations providing live presentations (including classes and workshops for the arts, occupational, and enrichment for quality of life and self improvement) are not exempt from this tax. If you live in Washington State, all organizations must charge this tax when hosting paid programs and the tax rate is based on either 1. where you live or will participate in any online programs or 2. The program location for in-person classes and workshops. You can learn more about these changes here.
To date, we have not been able to identify a system that will automatically calculate a different sales tax based on where you live at the time of your registration. Thus, because Clarion West is based in Seattle, we are applying the Seattle Combined Sales Tax rate of 10.35% to all tuition fees applied to Washington State residents and sending a second receipt with the final tax amount charged based on your location.
Want to learn more?
- You can learn more about these changes here.
- You can verify your individual sales tax rate on the Department of Revenue website.
- You can write to your State representatives asking them for an exemption to this rule!
- Find out your district number and who your state senator and representatives are here. If your work and residence are in different districts, you should feel free to contact legislators in both. While you vote in one, you create jobs and economic activity in another!
- Visit the Legislature’s website to learn more about the individual legislators. Email every member of your state district—one senator and two state representatives. It’s also helpful to CC their legislative aides. Here’s a legislative roster with all their contact information.
- You should also send your information about the impacts of 5814 to the cultural sector lead in the Department of Commerce, Shannon Halberstadt, at .