WA State Legislative Session

ESSB 6346 (Millionaire’s Tax)

After last year’s passage of ESSB 5814, we were determined to inspire the Legislature to revise the definition of “Live Presentations,” thereby making cultural sector programs exempt from the retails sales tax that was recently imposed on services. We were successful with this endeavor! Our push for a solution played out all the way to the final week and not the way we originally envisioned. We thought we’d be pushing just one bill but our advocacy became focused on four. In the end, revisions to the definition of “Live Presentations” were amended in Engrossed Substitute Senate Bill 6113 and Engrossed Substitute Senate Bill 6346. Yes, that’s the same bill that establishes a Millionaires Income Tax. This issue mattered to so many of you, so we’re happy to share all the changes.

ESSB 6113 language (page 7):

“Live presentations” do not include:

(A) Classes provided by preschools;

(B) Classes provided by elementary schools, secondary schools, and institutions of higher education as part of their accreditation;

(C) Musical, dramatic, comedic, or similar performances;

(D) One-on-one instructional activities including tutoring, consulting, and music lessons;

(E) Presentations given at the physical location of a facility exempt from property tax under RCW 84.36.020(2). For the purposes of this subsection (3)(l)(ii)(E):

(I) Presentations where participants may join via internet or telecommunications equipment are given at the physical location of the presenter during the real-time presentation; and

(II) Presentations where all participants, other than the presenter, attend at the physical location of a facility exempt from property tax under RCW 84.36.020(2) are given at the physical location of the participants regardless of the location of the

 presenter at the time of the presentation; and

(F) Youth camps;

*Takes affect when the Governor signs.

ESSB 6346 language (page 93):

“Live presentations” do not include:

(A) Before and after school care provided in-person and on-site by elementary schools;

(B) Presentations given by a nonprofit organization exempt from federal income tax under Title 26 U.S.C. Sec. 501(c) of the federal

internal revenue code;

(C) Musical, dramatic, comedic, or similar performances, including any incidental instruction;

(D) One-on-one instructional activities including tutoring and consulting; and

(E) Music lessons regardless of the number of participants;

* Takes affect on July 1, 2026

You may have heard news that the Millionaires Income Tax could face a legal challenge but smart language in the bill makes the revised definitions to “Live Presentations” severable to the bill. That means, these exemptions apply no matter what happens with the millionaires tax at the ballot or in the court. Our solution will endure! 

There are so many lawmakers to thank for this win but our deepest gratitude goes to the two leaders that drove the effort, Rep. April Berg and Sen. Noel Frame. We’ll soon be sending out an action alert to make it really easy for you to thank your elected representatives. Please keep an eye out for that!

What’s next? These bills have been approved by both Legislative Chambers and, the Governor must now sign them to become law. He has publicly stated that he intends to sign ESSB 6346 and hasn’t shared any concerns yet about ESSB 6113. So, we believe his support is forthcoming.