MOUNTLAKE TERRACE, Wash. — A sweeping new sales tax takes effect Wednesday in Washington, impacting more than 90,000 businesses and nonprofits across the state. Among those affected are nonprofit organizations working to help vulnerable communities.
The expanded tax, described as the biggest tax increase in Washington history, treats services as taxable goods for the first time. Starting Wednesday, nonprofits will pay taxes of up to 10% on services ranging from advertising to auctioneers — services that were previously tax-free.
At the Concern For Neighbors Food Bank in Mountlake Terrace, cars line up hours before doors open. The organization says need has never been higher in its 54 years of operation, while donations are down 40%. Inflation and job losses have already strained resources, and now the new tax adds another burden.
“All that is coming crashing down on us,” said Concern For Neighbors Executive Director Carla Brown. “It’s not a good situation right now.”
The tax affects services essential for charity fundraisers. An auctioneer must now charge the food bank sales tax, as do advertising and IT companies, eating into nonprofit funding.
“That’s food that’s directly being taken from our clients to cover these taxes,” Brown said.
Wendy Poischbeg, CEO of the Everett Chamber of Commerce, says costs can quickly stack up for nonprofits already struggling.
“If you think about an organization that’s doing fundraising, they use live presentations, they use IT services, they are out doing marketing to execute on their social impact, and that means less dollars going toward their mission,” Poischbeg said. “It’s a lot. They’re the safety net of your community.”
Concern For Neighbors is planning its first-ever fundraiser for December, worried new taxes could make the season of giving a little less abundant this year.
“The holidays are coming up. People are going to be in even more trouble financially. It’s just not a good combination,” a Brown said.
Adding to concerns is the Oct. 1 start for tax collection.
“This is the first we’re hearing about this,” said Brown. “We didn’t see it coming and it’s happening so fast.”
The State Department of Revenue will levy fines to anyone who does not collect or pay the taxes.
They’re offering a website to help people with the transition.
Many believe the new system is so confusing and chaotic that Olympia will have to take another look at the taxes and their ultimate impact next year.
“There’s a lot of ambiguity and not a lot of clarity,” said Poischbeg. “People are not prepared for this.”
트위터 공유: 워싱턴 nonprofits 세금 폭탄 충격