A taxing situation for our neighbors to the Northwest

This could be worth keeping tabs on, to see how it plays out…

Beginning on October 1, 2025, a new sales tax on services takes effect in Washington. As reported by the Washington State Standard (and republished on the Idaho Capital Sun):

Senate Bill 5814 is one of the biggest moneymakers used to bring in an estimated $3.6 billion over the next two years to fill a shortfall in the operating budget. This law is expected to fuel $1.1 billion in the two-year budget that began July 1, and $2.6 billion over four years. Hundreds of millions of dollars will also flow to local governments, as they get a share of state sales tax proceeds.

Advertising services are among those that will now be taxable, and is expected to bring in roughly $475 million over the next four years, according to the Washington State Standard. Comcast, however, believes the sales tax on advertising services is illegal, and is suing to get it overturned.

The Washington State Department of Revenue issued a release in July outlining details:

Starting Oct. 1, 2025, businesses must collect retail sales tax on advertising services. Additionally, gross income from these activities is subject to business and occupation (B&O) tax under the Retailing classification.

What are advertising services?

Advertising services means all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements, including, but not limited to:

  • Layout, art direction, graphic design, mechanical preparation, production supervision, placement, referrals, acquisition of advertising space, and rendering advice concerning the best methods of advertising products or services.
  • Online referrals, search engine marketing, and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign.

Advertising services do not include:

  • Web hosting services and domain name registration.
  • Services rendered in respect to the following:
    • Newspapers as defined in RCW 82.04.214.
    • Printing or publishing under RCW 82.04.280.
    • Radio and television broadcasting within this state as defined in RCW 82.04 (section 1, chapter 9, Laws of 2025).
  • Services rendered in respect to out-of-home advertising, including:
    • Billboard advertising.
    • Street furniture advertising.
    • Transit advertising.
    • Place-based advertising, such as in-store display advertising or point-of-sale advertising.
    • Dynamic or static signage at live events.
    • Naming rights.
    • Fixed signage advertising.
    • Note: This does not include direct mail.

It will be interesting to see what comes of this, particularly the Comcast lawsuit, and how it ultimately affects agencies in Washington. It’ll also be worth watching to see if lawmakers in neighboring states — including Idaho — draft similar legislation in the future, using this model as a source of additional tax revenue.

In Play: Idaho Department of Commerce

The Idaho Department of Commerce is currently soliciting responses for two RFPs — one for Marketing Services and another for Public Relations.

Both are two year contracts, with the option to renew and extend up to a total of six years.

The Public Relations RFP response is due by October 1st, and the Marketing Services RFP is due by October 7th.

The Idaho Department of Commerce has set up a site to provide background information to potential bidders here: https://commerce.idaho.gov/rfp/

Also, a notable “unique consideration” found in the Marketing Services RFP:

The Idaho Department of Fish and Game (IDFG) and the Department of Parks and Recreation (IDPR) anticipate using this resulting contract. Anticipated annual usage by both agencies is approximately four (4) combined projects, governed by Project Service Orders (PSOs). These projects are generally education and awareness campaigns intended to be proactive about issues, promote new service offerings, and inform scheduled maintenance that will affect visitors, etc.

Good luck to those participating.

Left unattended

I should have known better.

I left this site unattended for a while. It’s been pretty quiet, and there’s been no shortage of other things going on. You know, life and whatnot.

But in my absence, it seems some nefarious folks managed to weasel their way in, post some things they shouldn’t have, and generally cause a little havoc.

For those who may have seen any of that nonsense, apologies.

News from the North

Advantage Advertising in Lewiston has a new owner.

The Lewiston Tribune recently reported that Michelle Ralston purchased the agency from Charles Christopher.

Ralston, who was previously the agency’s Media Director, will now serve as the agency’s main point of client contact and manage the agency’s accounts. Christopher will remain with the firm.

Advantage Advertising was founded in 1986 by Charles Christopher and Frank Bruneel, of Bruneel Tire Factory, with Christopher taking full ownership in 1987.

The transaction closed on January 1st.

Congratulations to Michelle, and everyone at Advantage Advertising.