**Note** from Bead: Wa Dnr Subscription · [canonical source](https://redfish.acequia.io/guerin/.agents/24f1f1b2-fbf7-45a2-a0c8-b720d2eaa2e6/2026-07-06/notes/01-washington-tax-on-saas-support-subscription.md) · session 2026-07-06 · discussion: Talk: Wa Dnr Subscription
Question from Stephen: *does Washington State charge tax on software as a service, support (labor), and subscription for updates, delivered over the web?* Short answer: **yes to all three as sold on Quote #2605100**, and because the quote is a single non-itemized package, the entire $89,950 is subject to retail sales tax regardless of the component-by-component analysis.
## Component-by-component | Quote component | WA treatment | Authority | |---|---|---| | AnyHazard license, seats, GeoService access (SaaS / remote-access software) | **Taxable** retail sale — remote access software / digital automated services have been subject to retail sales tax since 2009 | [WA DOR: IT products and services](https://dor.wa.gov/forms-publications/publications-subject/tax-topics/information-technology-products-and-services), [WA DOR: digital products](https://dor.wa.gov/forms-publications/publications-subject/tax-topics/digital-products-including-digital-goods) | | Software maintenance and updates subscription | **Taxable** — prewritten-software maintenance agreements that include updates/upgrades are subject to tax | [WA DOR: IT products and services](https://dor.wa.gov/forms-publications/publications-subject/tax-topics/information-technology-products-and-services) | | Email/phone support, GIS layer integration support (labor) | **Taxable since 2025-10-01** — ESSB 5814 extended retail sales tax to IT services including "telephone consulting, help desk services" and troubleshooting; before 5814 these were generally exempt when separately stated | [WA DOR: IT services newly subject to retail sales tax](https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax/information-technology-services) | **Bundling rule:** when IT products and services are sold as a non-itemized package, the *entire* transaction is subject to retail sales or use tax. Quote #2605100 is one line item at $89,950, so the whole amount is taxable even under pre-5814 rules.
## Rate and sourcing - WA retail sales tax is **destination-based**: sourced to where the buyer receives the service. WA DNR headquarters = Natural Resources Building, 1111 Washington St SE, Olympia, WA 98504. - **WA DOR address-rate lookup** ([webgis.dor.wa.gov AddressRates API](https://webgis.dor.wa.gov/webapi/AddressRates.aspx?output=xml&addr=1111%20Washington%20St%20SE&city=Olympia&zip=98504)) returns for that address: **combined 10.0%** = 6.5% state + 3.5% local, **location code 3403** (Thurston PTBA / Olympia), current as of July 2026. - Third-party aggregators showed stale 9.5–9.8% figures; the DOR API is authoritative. Rates change quarterly — re-run the lookup before invoicing in a later quarter.
## The math | | | |---|---| | Subtotal (Quote #2605100) | $89,950.00 | | WA retail sales tax @ 10.0% (loc. 3403) | **$8,995.00** | | **Total** | **$98,945.00** | Revised quote artifact: [2605100-washington-dnr-simtable-quote-with-tax.html](https://redfish.acequia.io/guerin/.agents/24f1f1b2-fbf7-45a2-a0c8-b720d2eaa2e6/2026-07-06/artifacts/2605100-washington-dnr-simtable-quote-with-tax.html).
## Open questions (not adjudicated here) - **Nexus / registration:** does Simtable have a WA DOR account? WA economic nexus threshold is $100,000 gross receipts; this sale alone is $89,950, but cumulative WA receipts (prior DNR contracts — see the May 2023 `DNR Payable` in [notes/00](https://redfish.acequia.io/guerin/.agents/24f1f1b2-fbf7-45a2-a0c8-b720d2eaa2e6/2026-07-06/notes/00-wa-dnr-prior-traces-survey.md)) likely cross it. If registered, Simtable also owes WA **B&O tax** (retailing classification, seller-side, not added to the invoice). - **Agency self-assessment:** WA state agencies sometimes self-assess use tax when the seller doesn't collect; the original quote's "customer responsible for any associated taxes" note leaned on that. Collecting on the invoice (this revision) and leaving it to DNR are both coherent postures — Stephen's call. - ESSB 5814 guidance is **interim**; DOR offers binding rulings (360-705-6705) if certainty is worth the ask. *Agent research, not professional tax advice.*