Sales Tax Changes on Classes & Events for Washington State Residents
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
Clarion West is temporarily pausing registrations for the fall classes as we assess the best way to process this new sales tax. Our current registration system is working toward a solution that will assist in managing the complications of offering online programs, where the sales tax will vary depending on location.
We hope to open registrations again for the winter/spring season beginning December 1.
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.
Tax Advice & Support
Clarion West is a small organization and we will be doing our best to manage these changing tax laws in Washington State and to let you know about them.
For more information about this new legislation, including what is taxable and what is not under this new law, please visit the Interim guidance statement regarding changes made by ESSB 5814 for live presentations from the Department of Revenue.
If you are a tax professional and have advice for the organization on how to best navigate this new legislation as it evolves, please email us at .
