State bill to tax all advertising amended

⚠️UPDATE:

An amendment passed to remove Section 27 from SSB 6113, keeping in place the exemption for newspapers and others previously not taxed. Senator Curtis King offered the amendment to remove the section, and Senator Marcus Riccelli championed the amendment in the Democratic Caucus. 

“This would have I believe a very devastating effect on our economy in so many areas. So many business would be affected. So many nonprofits would be affected," Sen. King said on the Senate floor.

Senator Noel Frame also recommended it be removed, noting “Particularly our journalism industry is really struggling under so many pressures far beyond taxes that make it very hard for them to survive.”Many thanks to all who voted in favor, and to all of you who provided the crucial advocacy to make it happen.

⚠️ ACTION ALERT

Stop the Expansion of the Advertising Sales Tax

Section 26 of SB 6113 would expand Washington’s sales tax to all advertising if the state loses or settles its lawsuit with Comcast. An attempt by Sen. Mark Schoesler to remove this provision  (Section 26 of the bill) failed in a voice vote.

If this passes into law, it could result in:

    •    A potential ~10% cost increase on all advertising

    •    Harm to local newspapers, broadcasters, schools, nonprofits, clubs, and small businesses

    •    Washington becoming a national outlier by broadly taxing advertising services

Background: 

Comcast contends that last year's statute violates federal law because it does not apply the tax to all advertising services. SB 6113 anticipates a state loss in the suit which would cost the state nearly a half billion dollars. Section 26 of SB 6113 stipulates the requirement that if the state loses, or settles, any part of the lawsuit, "then the sales tax will be extended to all advertising rather than Comcast freeing themselves of the tax. This includes all of our advertising sold," explains Rowland Thompson, Allied Daily Newspapers lobbyist.This provision could permanently raise costs for the very businesses that rely on advertising to survive—at a time of rising expenses and tight margins.

Take action now: 

    •    Contact your legislators and the Governor and urge them to remove Section 26 from SB 6113.

    •    Attend Newspaper and Broadcast Day on February 19 to make your voice heard and speak directly with legislators as the session enters its final weeks. Register HERE. Your presence and voice are essential.

    •    Join a WNPA Task Force to address this issue, help shape messaging and an advocacy campaign. Contact [email protected].

If you have any questions, feel free to contact Ellen Hiatt, WNPA Executive Director,  at (360) 474-4160, or [email protected].