5814-S.E AMH SCHM HARA 433

ESSB 5814 - H AMD 1411

By Representative Schmidt

NOT ADOPTED 04/23/2025

On page 6, beginning on line 21, after "(j)" strike all material through "(k)" on line 27

Reletter the remaining subsections consecutively and correct any internal references accordingly.

On page 7, line 7, after "hosting services" insert ", shopping cart platforms, owned digital content, user-generated content, affiliate marketing links, physical signage systems,"

On page 25, line 32, after "period" insert "or equal to 80 percent of the average monthly amount of state sales tax collected by the taxpayer during the first six months of 2026"

On page 25, line 36, after "2027" insert ", and may adjust for sourcing, refunds, exchanges, or accounting reconciliation without penalty"

On page 28, line 33, after "to" strike "10" and insert "five"

On page 29, beginning on line 1, after "(b)" strike all material through "sales" on line 5 and insert "The department shall waive the penalty under (a) of this subsection if:

(i) The taxpayer provides documentation to the department indicating that the taxpayer's June 2027 taxable retail sales are less than 80 percent of the taxpayer's June 2026 taxable retail sales; or

(ii) The taxpayer can demonstrate financial hardship, including the sale or closing of a significant part of the business, a substantial decline in sales, or extenuating circumstances as approved by the department, such as a one-time extraordinary event"

EFFECT:

Removes the imposition of sales and use tax on investigation, security, security monitoring, and armored car services.

Excludes shopping cart platforms, owned digital content, user-generated content, affiliate marketing links, and physical signage systems form the definition of advertising services subject to sales and use tax.

Provides an alternate method for calculating prepayment of sales tax equal to 80 percent of the average monthly amount of state sales tax collected by the taxpayer over the first six months of 2026.

Clarifies that a taxpayer may make adjustments for sourcing, refunds, exchanges, or accounting without penalty.

Reduces the prepayment penalty from 10 percent to 5 percent.

Requires the department to waive the penalties instead of allowing the waiver and provides a hardship waiver as a reason for penalties to be waived.

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