A major policy concern has emerged in the Department of Revenue (DOR) request bill, HB 2257 / SB 6113. DOR has described the measure as a technical codification of last year’s digital-advertising guidance. However, Section 26 goes well beyond technical cleanup by significantly expanding Washington’s sales tax base to include advertising services that have historically been treated as non-taxable.
If enacted as written, Section 26 would make sales tax apply to a wide range of traditional advertising, including radio and broadcast television, newspapers and print inserts, billboards and transit advertising, business-name signage, in-store displays and point-of-sale materials, and sponsorship-style placements such as signage at live events and stadium naming rights. In other words, the reach is not limited to digital advertising; it would touch nearly every channel retailers and local businesses use to reach customers.
This expansion also intersects with ongoing litigation. Washington’s 2025 digital-advertising tax is being challenged in the Comcast lawsuit, which argues the tax violates the Internet Tax Freedom Act by taxing online activity while leaving comparable offline activity untaxed. Section 26 appears to preempt that argument by extending taxability across advertising generally, rather than allowing the digital-only tax to stand or fall on its own.
Finally, the bill codifies a new apportionment standard that bases taxability on the viewer’s location, not where the ad is placed or purchased, raising complex questions for signage and sponsorships viewed in Washington. Retailers, auto dealers, beer distributors, newspapers, broadcasters, and stadium operators have all flagged concerns about the breadth and impact of this proposal.
