09/29/2025
New WA Tax Changes
The new tax on services
You may or may not know that on Oct 1, one of the most significant tax changes in WA history will begin. Until now, the state has not imposed a sales tax burden on services (classes) like ours. This is the basic rule in all states except Hawaii, New Mexico, South Dakota, and West Virginia. On Oct 1, Washington will join that short list and begin imposing sales tax on most services, including "live performances, lectures, workshops, and courses" (whether in-person or digital). Since it also will begin taxing advertising services, custom software sales/website development, IT services, security and system monitoring, and temporary staffing services, Washingtonians will likely feel the effects of the tax in many areas of their lives very soon.
(Non)exemptions
Non-profits like ours are not exempt from the new sales tax. There is an exception to the "live courses" tax for education, but it only covers courses offered by Kindergarten-12th grade schools and accredited higher educational institutions. Community courses and private lessons for 2 or more people are not exempted from the tax. This means any lesson you take from a local teacher or small business that teaches anything from piano or cooking lessons to Taekwondo will be taxed as of Oct. 1. Naturally, Scandinavian language and culture courses are also included in these taxes on community education.
Example: What this means for SLI Classes
A standard SLI class lasting 1 quarter is $220. If the state sales tax is applied to this, the price goes up to $234.30. The local sales tax where you live is also required. I live in Edmonds, which has a local tax of 4%, so an Edmonds resident would now pay $243.10 for a standard SLI class. Someone living in the more rural town of Yacolt, where the local tax is 2%, would pay $238.70 instead of $220.
Taxes will not be applied this quarter (Fall 2025)
Because it seems grossly unfair to spring these new taxes on you without warning, we have decided not to charge you sales taxes this quarter. We will pay your taxes for you. The taxes will instead be paid out of our Advertising budget and after that, the director's pay. This is where you come in. PLEASE tell everyone you can about our classes, encourage people to take them, post info about us, "like" us, recommend us, help us advertise.
With tremendous gratitude for your interest, participation, enthusiasm, and support over weeks, years and decades,
Melissa Lucas and the entire SLI teaching team
