New Washington State Legislation Targets Online Education
On Feb. 18, 2026, the American Society of Association Executives (ASAE) contacted its members about a growing threat: The state of Washington has begun taxing live presentations, including lectures, seminars, workshops and courses delivered either in person or virtually. The tax applies based on where the attendee is located, creating new compliance challenges for associations.
A nonprofit exemption is now included in a technical corrections bill moving through the Washington State Legislature.
What Changed?
Effective Oct. 1, 2025, Washington extended its retail sales tax to most live presentations, regardless of format.
Under this policy:
- The attendee’s location determines taxability rather than the location of the presenter or host organization
- Virtual events count, even if the host is based in another state
- View the Feb. 5, 2026, ASAE Inroads article on this issue, which was also posted on OSAP's website here.
Why It Matters to Associations:
This policy could create new administrative and financial burdens for association events and education programs:
- If any attendees are located in Washington, the event may trigger a Washington sales-tax obligation even if the event is hosted in another state
- If your association hosts events in Washington, live presentations may now be subject to sales tax at the point of sale
ASAE has heard significant concern from members about the operational and financial impact of this policy, especially for virtual education.
Legislative Update:
HB 2257, a technical corrections bill, includes a nonprofit exemption for live presentations, a key fix for associations and other nonprofit organizations.
- Passed the House Finance Committee: Feb. 4, 2026
- Now under review by the House Rules Committee
- The Senate has passed their own legislation amending the retail sales tax and did not include a nonprofit exemption
- The Washington legislative session is expected to end in mid-March.
ASAE strongly supports the nonprofit exemption and additional steps to clarify or amend the tax.
How You Can Help
If you are impacted, please consider writing a letter to Washington legislators. View ASAE’s letter here.
For questions and to receive the contact information for Washington state key legislators, contact ASAE's Kyle Hayes, senior director of public policy, via e-mail.