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WA Tax Changes (Again!)
The Current Situation
The new tax on services will be removed for non-profits
The sales taxes imposed on non-profit services by WA State will be removed on July 1, 2026. GOOD!!!
(Scroll down for our previous explanation of the tax and what it meant for us from Oct 1, 2025 to July 1, 2026). WA residents are strongly urged to wait until July 1 and avoid a tax of 6.5% (state) plus your local tax (depending on where you live, you will pay a total of 7.7% - 10.6%).
Note about Non-exemptions
FYI There is STILL no exception to the "live courses" tax on education for for-profit businesses. :( Community courses (unless non-profit) and private lessons for 2 or more students are still not exempted from the tax. This means any lesson you take from a local teacher or small for-profit business that teaches 2 or more students - anything from piano to cooking lessons to Taekwondo - is still being required to pay sales tax on these educational services.
Thank you!
With unceasing gratitude for your interest, participation, enthusiasm, and support over weeks, years and decades,
- Melissa Lucas and the entire SLI teaching team
The Previous Situation
The new tax on services
You may or may not know that on Oct 1, 2025, one of the most significant tax changes in WA history went into effect. Until then, the state did not impose a sales tax burden on services (classes) like ours. This tax exemption for many services is the law in all states except Hawaii, New Mexico, South Dakota, and West Virginia. On Oct 1, Washington joined that short list and began 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 are likely feeling the effects of the tax in many areas of their lives.
(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 are not exempted from the tax. This means any lesson you take from a local teacher or small business that teaches 2 or more students anything from piano to cooking lessons to Taekwondo is now taxed as of Oct. 1, 2025. 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. When the state sales tax is applied to this, the price goes up to $234.30. On top of that, 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 now has to pay $243.10 for a standard SLI class (an extra $23.10). Someone living in the more rural town of Yacolt, where the local tax is 2%, must pay $238.70 (an extra $18.70). Given these examples, you can easily imagine the impact the tax has on community education teachers and students of all kinds.
Taxes will not be applied in 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 the taxes on our classes for you this quarter. 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.
Taxes will be applied in Winter 2026 and beyond
Though we wish we did not have to collect them, we will have to begin applying sales tax to our courses starting in Winter Qurarter, 2026. It will be added to the course price at checkout.
Thank you!
With tremendous gratitude for your interest, participation, enthusiasm, and support over weeks, years and decades,
- Melissa Lucas and the entire SLI teaching team
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