Washington Retail and our members are concerned about the negative impacts House Bill 1303 will have on business operations. It would increase costs and business complexities especially as they relate to advertising activities, ID verification, and fraud detection.

HB 1303 adopts a 1.8% tax on data brokers. Imposing a new tax on businesses that cater to retailers will undoubtedly lead to higher prices charged for these services.

Retailers have no higher priority than earning and maintaining trusted relationships with their customers. Our success depends on providing the highest quality goods and services at competitive prices. Our guests expect, even demand a very high level of customer service that includes keeping them informed on products of interest to them. We do this through a variety of advertising strategies and very effectively through loyalty programs.

Retailers and the companies they contract with for services already pay taxes to the state. This legislation would add another layer of taxes and inevitably increase consumer costs. Additionally, it would make Washington an outlier and put us at a competitive disadvantage with other states.

For these reasons we ask that the Legislature not adopt House Bill 1303.