Olympia’s New Tax on Professional Services Will Burden Small Businesses and Consumers, Local Marketing Firm Warns

Washington’s new sales tax on services could raise costs, strain small businesses, and limit critical marketing efforts, warns DWMS.

TACOMA, WA, UNITED STATES, September 10, 2025 /EINPresswire.com/ -- With Washington’s expansion of sales tax on professional services (ESSB 5814) set to take effect in less than a month, David White Marketing Services (DWMS) is sounding the alarm on the impact this legislation will have on small businesses and their customers.

The new law extends retail sales tax to industries such as IT support, custom software, advertising, and marketing, while also requiring a one-time prepayment from larger firms toward state sales tax collection. For small businesses already grappling with historic market declines, this translates into higher operating costs and, ultimately, higher prices for Washington consumers.

“Many of our clients are experiencing a 30–50% drop in market demand due to the economy,” said David White, founder of DWMS. “We’ve helped businesses achieve year-over-year growth, but in many cases that only kept them flat once the wider market conditions were factored in. Without consistent, efficient marketing, many of these businesses would already be closing their doors. Now Olympia is adding a tax that makes it harder for them to even hold their ground.”

White cautions that the added costs will undermine critical marketing efforts, the very strategies that allow small businesses to attract customers, sustain growth, and remain open in a challenging economy.

“Marketing is how small businesses survive downturns. It’s how they find new customers, retain loyal ones, and stay visible when demand is shrinking,” White added. “Pulling back on marketing during tough times doesn’t save a business. It accelerates decline. That’s why this tax hurts doubly. It punishes the very investment that keeps local businesses alive.”

State Representative Josh Penner, who opposed the measure, emphasized the need for small business perspectives in Olympia’s policy debates.

“I opposed this measure because I believe broad tax hikes without thoughtful government reform harm small businesses and, by extension, their customers and employees,” Rep. Penner said. “David (White)’s feedback underscores how these policies affect real people. As we head into the next session’s tax debates, I want to ensure that voices like his are heard.”

DWMS is responding to the legislation on two fronts:

1. Helping clients maximize marketing efficiency so they can stay competitive in a contracting market.

2. Working with lawmakers to highlight the unintended consequences of ESSB 5814 while advocating for more sustainable solutions.

“We’re grateful for state representatives like Josh Penner who are willing to fight on our behalf,” White said. “His invitation to us and our clients, we gladly extend to other small businesses who would like to voice their concerns.”

For more information or to join the conversation, contact team@white.am.

Keyona Ransom
David White Marketing Services
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