State Tax Day - Current, S.14, Washington—Sales and Use Tax: Guidance Provided on Workforce Education Investment Surcharge, (Dec 4, 2025)

The Washington Department of Revenue has provided guidance on the workforce education investment surcharge applicable to select advanced computing businesses. Beginning January 1, 2026, the surcharge is imposed at a rate of 7.5% multiplied by the gross income subject to the service and other activities business and occupation tax. Through December 31, 2025, the surcharge is equal to the rate of 1.22% multiplied by the gross income subject to the service and other activities B&O tax.

Select advanced computing businesses are businesses that are members of an affiliated group with at least one member engaging in advanced computing, and the affiliated group has worldwide gross revenue exceeding $25 billion in the prior calendar year.

The parent company reports the surcharge for all affiliated businesses subject to the surcharge using the "Advanced Computing account." The account reports and pays the surcharge on a quarterly basis.

Select Advanced Computing Businesses, Washington Department of Revenue, December 3, 2025