TWIST in Washington-Part 2: Decoding the new tax on custom software and IT services
11.12.2025 | Duration: 89:19
On this TWIST podcast we continue to break down Washington state’s new retail sales tax on custom software, custom website development, and a wide range of IT services.
Podcast overview
On this This Week in State Tax (TWIST) podcast, host Harley Duncan of KPMG's Washington National Tax practice is joined by Seattle-based specialists Michele Baisler and Alex Low. They dive into the details of Washington's Enrolled Senate Substitute Bill 5814, which expands the retail sales tax to several previously exempt services. This discussion focuses on the new taxability of custom software, software customization, custom website development, and a broad spectrum of information technology services. The team also explores the new definitions, the complexities of sourcing these services to single or multiple locations, and the practical challenges businesses and tax professionals will face. They also touch on the use of direct pay permits and multiple points of use (MPU) certificates, providing essential insights for any business operating or providing tech services in Washington state.
In case you missed it, you can access Part 1 of the discussion – A New Tax on Digital Ads – here. For even more details, read our State and Local Tax Alert.
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TWIST - This Week in State Tax
What’s included: Discussion on noteworthy developments with broad applicability to taxpayers across the country. Brought to you by: KPMG Washington National Tax – State and Local Tax practice.
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This Week in State Tax
This Week in State Tax (TWIST) is a series providing the latest updates on the ever-changing state and local tax environment.
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