LIBRARY EXEMPTION FROM DIGITAL PRODUCTS TAX
In the recently completed session, the Washington legislature passed, and the governor has signed a bill, ESHB 2075, which imposes a tax on digital products and services. The bill takes effect on July 26. Fortunately, due to the work of the WLA Legislative Planning Committee (Mike Wirt, co-chair) and Legislative Liaison Steve Duncan, libraries have been exempted from the tax.
The Washington Department of Revenue (DOR) has confirmed that libraries are eligible for the exemption, which applies to digital products and services which are purchased to be given away for free. The purchaser must provide the seller with an exemption certificate, which will be available from the DOR web site. For more information about the bill, visit the DOR’s FAQ, available via this link: www.secstate.wa.gov/quicklinks/2075-FAQ.
Previously, the DOR had ruled that libraries were exempt from paying sales tax on subscription database purchases, but this new bill appears to apply more broadly to all types of digital products and services. Tracking the effect of this bill on libraries is coordinated at the State Library by Will Stuivenga, Statewide Database Licensing Project Manager: [email protected] or 360.704.5217.
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