Washington Approves Sales Tax Exemption for Nonprofit Events

We are pleased to report that beginning July 1, 2026, nonprofit organizations will no longer be required to collect or pay retail sales tax on their presentations. WSAE, Associations West and ASAE members advocated for relief from taxation of presentations, emphasizing the impact on associations. Their efforts contributed to the final legislation in SB 6346, which was signed into law on March 30, 2026.  The law  excludes presentations provided by organizations exempt under Section 501(c) of the Internal Revenue Code from the definition of taxable “live presentations.” This change takes effect July 1, 2026 (SB 6346 text).

However, under a 2025 law, sales tax applies to admission for live and virtual presentations for nonprofits, which began on October 1, 2025 (Washington Department of Revenue guidance). As a result, nonprofit organizations are required to collect and remit sales tax on presentation-related revenue from October 1, 2025 through June 30, 2026. Please note  there is a limited transition rule for contracts entered into before October 1, 2025: if those contracts were not fully prepaid, they may remain exempt only through March 31, 2026, after which the tax applies through June 30, 2026 (DOR interim contract guidance).