Tax insight

Washington provides guidance on security services under ESSB 5814

Insight
5 minute read
October 16, 2025

What happened?

The Washington Department of Revenue (DOR) issued interim guidance on September 12, 2025, clarifying what qualifies as a security service, how those services are sourced, and which exemptions may apply.

Why is it relevant?

Effective October 1, 2025, ESSB 5814 expands the “retail sale” definition to additional services, including investigation, security, security monitoring, and armored car services, which are subject to the retailing business and occupation (B&O) tax and retail sales tax as of the effective date if sold to consumers.

For more information, see PwC’s Insight.

Actions to consider

Companies selling investigation, security, security monitoring, and armored car services should carefully review service offerings to determine whether they became taxable beginning October 1, 2025. Buyers of these services should review invoices to determine if sales tax was collected by the vendor. To the extent sales tax was not collected, purchasers will be obligated to pay use tax on their use within Washington.