SB 6351 — Increasing fiscal resources for students and children by providing targeted sales tax exemptions for schools and certain before-and-after school care programs and arts and cultural classes.

S-5580.1S-4786.3 SUBSTITUTE SENATE BILL 6351 State of Washington 69th Legislature 2026 Regular Session By Senate Ways & Means (originally sponsored by Senators Cortes, Krishnadasan, Conway, Dhingra, Frame, Hasegawa, Nobles, Pedersen, Saldaña, Stanford, Trudeau, Valdez, and C.

Wilson)Wilson READRead FIRSTfirst TIMEtime 03/02/26.02/09/26.

Referred to Committee on Ways & Means.

1 SSBSB 6351 consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person;

2 SSBSB 6351 nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

3 SSBSB 6351 a person is a rental or lease of real property and not a mere license to enjoy the same.

4 SSBSB 6351 (h) Custom website development services.

5 SSBSB 6351 signage at live events;

and (B) ProgramsClasses provided by arts and cultural nonprofit organizationsorganizations. including, but not limited to, classes, seminars, rehearsals, workshops, or courses dedicated to promoting, providing, or supporting education in visual, performing, literary, or media arts to the general public.

For the purposespurpose of this subsection (3)(l), "arts and cultural nonprofit organization"organizations" means an organization exempt from tax under section 501(c)(3) of the federal internal revenue code whoseprimarily purposededicated is to promotepromoting, eitherproviding, theor supporting education in visual, performing, folk,literary, andor media arts,arts culturalto expressionelementary school and traditions,secondary school students or both;the general public;

(C) Separately stated charges for services, such as massage, nutritional consulting, and body composition testing, that do not p.require the customer to engage in physical fitness activities to receive the service.

6The SSBexclusion 6351 require the customer to engage in physicalthis fitnesssubsection activities(3)(m)(ii)(C) top. receive the service.

The6 exclusionSB in6351 this subsection (3)(m)(ii)(C) does not apply to personal training services and instruction in a physical fitness activity;

(iv) For the purposes of this subsection (3)(m), the following definitions apply:

7 SSBSB 6351 (iv)(A) For"Athletic theor purposesfitness facility" means an indoor or outdoor facility or portion of thisa subsectionfacility (3)(m),that theis followingprimarily definitionsused apply:for:

(A) "Athletic or fitness facility" means an indoor or outdoor facility or portion of a facility that is primarily used for:

For purposes of this subsection (6)(a), the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the p.software into use.

8There SSBis 6351no softwareseparate intosale use.of the key or code from p.

There8 isSB no6351 separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser.

p.(iii) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale;

9and SSBp. 6351 (iii) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale;

and9 SB 6351 (iv) Sales in which the purchaser is obligated to make continued payment as a condition of the sale.

(c) A retail sale of digital goods, digital codes, or digital automated services does not include the following services if the sale occurs between members of an affiliated group as defined in RCW 82.04.299(1)(f) or is to an elementary school, secondary school, school district, or educationala servicesecondary district:school:

For purposes of this subsection (8)(c), "data processing service" means a primarily automated service provided to a business or other organization where the primary object of the service is the systematic performance of operations by the p.service provider on data supplied in whole or in part by the customer to extract the required information in an appropriate form or to convert the data to usable information.

10Data SSBprocessing 6351services servicep. provider on data supplied in whole or in part by the customer to extract the required information in an appropriate form or to convert the data to usable information.

Data10 processingSB services6351 include check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities.

and (d) farmers acting under cooperative habitat development or access contracts with an p.organization exempt from federal income tax under 26 U.S.C.

11 SSB 6351 organization exempt from federal income tax under 26 U.S.C.

501(c)(3) of the federal internal revenue code or the Washington statep. department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.

11 SB 6351 state department of fish and wildlife to produce or improve wildlife habitat on land that the farmer owns or leases.

However, charges for golf instruction are not a retail sale, provided that if the instruction involves the use of a golfing facility that would p.

12 SSBSB 6351 charges for golf instruction are not a retail sale, provided that if the instruction involves the use of a golfing facility that would otherwise require the payment of a fee, such as green fees or driving range fees, such fees, including the applicable retail sales tax, must be separately identified and charged by the golfing facility operator to the instructor or the person receiving the instruction.

(ix) Bungee jumping, zip lining, and riding inside a ball, whether inflatable or otherwise;

13 SSBSB 6351 (ix)(x) BungeeHorseback jumping,riding zipoffered lining,to the public, where the seller furnishes the horse to the buyer and providing instruction is not the primary focus of the activity, including guided rides, but not including therapeutic horseback riding insideprovided by an instructor certified by a ball,nonprofit whetherorganization inflatablethat offers national or otherwise;international certification for therapeutic riding instructors;

(x) Horseback riding offered to the public, where the seller furnishes the horse to the buyer and providing instruction is not the primary focus of the activity, including guided rides, but not including therapeutic horseback riding provided by an instructor certified by a nonprofit organization that offers national or international certification for therapeutic riding instructors;

(xvii) Paintball and airsoft activities;

14 SSBSB 6351 (xvii)(xviii) PaintballSkating, including ice skating, roller skating, and airsoftinline activities;skating, but only in respect to discrete charges to members of the public to engage in skating activities, but not including skating lessons, competitive events, team activities, or fees to join or renew a membership at a skating facility, club, or other organization;

(xviii) Skating, including ice skating, roller skating, and inline skating, but only in respect to discrete charges to members of the public to engage in skating activities, but not including skating lessons, competitive events, team activities, or fees to join or renew a membership at a skating facility, club, or other organization;

For purposes p.of this subsection (15)(b)(ii), "educational institution" has the same meaning as in RCW 82.04.170;

15p. SSB 6351 of this subsection (15)(b)(ii), "educational institution" has the same meaning as in RCW 82.04.170;