Washington Approves Sales Tax Exemption for Nonprofit Events

The Washington State Legislature has approved a nonprofit exemption from the state’s retail sales tax on live presentations, included in SB 6346 and effective July 1, 2026. This change follows a 2025 policy expansion that applied sales tax to conferences, workshops, lectures, and similar events, whether held in person or virtually. In response, ASAE and its members advocated for relief, emphasizing the impact on associations. Their efforts contributed to the final legislation, which was signed into law on March 30, 2026. Contracts established before October 1, 2025, will remain exempt from the tax through June 30, 2026. While the broader law could face legal challenges, provisions are in place to protect the nonprofit exemption.

This exemption is significant for associations, which depend on live events to deliver education, professional development, and community engagement. Because nonprofit organizations reinvest event revenue into their missions, applying sales tax to these activities would have reduced funding for workforce development and member services. By removing this burden, the legislation helps ensure associations can continue offering high-value programming without diverting resources away from their core purposes.