Audit Report on Building Fees (Draft) Released

In the last legislative session a law (SB 5120) was passed requiring the State Auditor to conduct a performance audit of building permit and inspection fees. The auditor has released his draft report.

The bill also required that permit fees not exceed the direct and indirect costs associated with reviewing permit applications, conducting inspections, and preparing specific environmental documents.

The auditor reviewed 8 counties for their permit fees and the reasonableness of those fees. The audit finds:

“Among the eight counties surveyed, there were varying approaches to the determination of building permit fees. Most of these approaches focused on setting the rates at a reasonable level in relation to an established benchmark. These new restrictions will require the counties to set permit fees at a level sufficient to recover only the costs of administering the program. Achieving this objective will require counties adopt a cost recovery methodology to fee setting.”

The report also notes some aspects of the bill, and implementation, which are difficult:

• Many counties do not have systems in place to track the indirect costs of building permit programs; the bill requires fees to be tied to costs, but provides incomplete guidance on how costs are to be determined.
• The bill does not address the need for a surplus to be built during good times to get departments through lean times. For instance, because permit revenue is down in the last year most departments would be eliminating staff or radically adjusting their fees to meet the basic permit needs.

As noted, this is a draft report. The final report should be issued in January. The draft gives the oversight committee a chance to review it and make comments prior to its final issuance. They are not seeking public comment on the draft.

Please review the report here and share any comments you may have.

Governor Gregoire Announces Boards/Commissions Cuts/Changes

Governor Gregoire recently issued recommendations for changes to the many boards and commissions in Washington state. (Follow the link for the Governor's press release and lists of affected agencies.)

She eliminated 17 boards via executive order and has proposed another 78 be eliminated by legislative action. She is also proposing the consolidation, movement and merger of some boards and sub-cabinet agencies.

For the most part there is very little impact on the architectural profession by these proposals. The licensing board, for instance, would be unaffected. And, many of those being eliminated likley will not be missed by the profession or the people of Washington. However, there are a few proposals that merit a closer look by the AIA|WA.

Architects serve on the following boards being proposed for elimination:

• The Capital Projects Advisory Review Board (CPARB)
• The Capitol Campus Design Advisory Committee

In addition the AIA has had an interest in the following board being proposed to be eliminated:

• Home Inspector Advisory Licensing Board

CPARB is a board that the AIA|WA helped to create and has protected against elimination in the past. It serves a vital regulatory and oversight function regarding the use of alternative public works procurement processes by state and local government agencies. Norm Strong, FAIA, is the AIA’s current representative on CPARB. It is not clear if the Project Review Committee, which reports to CPARB, would also be eliminated.

The Capitol Campus Design Advisory Committee, “Advises the State Capitol Committee and the director of General Administration to review programs, planning, design, and landscaping of state capitol facilities and grounds and to make recommendations that will contribute to the attainment of architectural, aesthetic, functional, and environmental excellence in design and maintenance of capitol facilities on campus and located in neighboring communities.” The law requires that the appointees be: two architects; one landscape architect; and an urban planner. The AIA members serving on the committee are Paul Blanton, FAIA, of Spokane and Alex Rolluda, AIA, of Seattle and Dennis Haskell, FAIA, of Seattle.

The Home Inspector board was created only recently to oversee the development and implementation of the home inspector licensing program. AIA|WA supported the creation of the licensing program.

The Governor is also proposing to create an environmental and land use hearings office by reducing and combining the Growth Management Hearings Boards and the Environmental Hearings Office

Finally, Gregoire proposes to reorganize the Department of Commerce (formerly CTED). Currently, the State Building Code Council is housed at Commerce. Gregoire is proposing to move it to the Department of Labor & Industries. John Cochran, AIA, of Seattle, serves as AIA's main representative on the board and we have several members serving on the Council and on technical advisory groups (too many to succinctly list).

There is some logic to this move. Related programs, such as elevator and electrical inspection, are housed at L&I. But, L&I is an agency that has a very political culture and has been problematic in a number of other areas. For instance, we’ve received complaints about the lack of responsiveness of the elevator inspectors.

What are your thoughts on the elimination proposals? Are they needed reforms. Or, are there problems with the proposals. Comment below.

2010 AIA Gold Medal Awarded to Peter Bohlin, FAIA

Profession’s highest honor goes to architect known for exceptional contextual use of materials.

The Board of Directors of The AIA voted today to award the 2010 AIA Gold Medal to Peter Bohlin, FAIA. Bohlin is the founder of Bohlin Cywinski Jackson, which has offices in Seattle, Wilkes-Barre, Pa., Pittsburgh, Philadelphia, and San Francisco.

The AIA Gold Medal, voted on annually, is considered to be the profession’s highest national honor. The Gold Medal honors an individual whose significant body of work has had a lasting influence on the theory and practice of architecture. Bohlin will be honored at the 2010 AIA National Convention in Miami.

AIA President Marvin Malecha, FAIA, notified Bohlin by telephone immediately after the Board made its decision. “I’m so pleased and I’m surprised,” said Bohlin. “We all believe in architecture. It is our life to a great extent. Like athletes, we all know that it’s hard work to make it look easy, and we’re all constantly striving to do that.”

Over the course of his long career, Bohlin has designed rural houses and nature centers as well as excellent urban buildings. The key to success for both building types is their contextual use of materials. Locals can see an example of Bohlin’s work: the Seattle City Hall.

“He moves from the log cabin to the glass box with the same unassailable ethic,” wrote Mack Scogin, FAIA, of Mack Scogin Merrill Elam Architects, in a recommendation letter.

Bohlin’s projects have earned 14 national AIA Awards, including nine Institute Honor Awards, COTE Top Ten Green Project Awards, AIA Committee on Education and AIA Housing Awards. Bohlin is the 66th AIA Gold Medalist. In recognition of his legacy to architecture, his name will be chiseled into the granite Wall of Honor in the lobby of the AIA headquarters in Washington, D.C.

Public Meeting on Climate Change

Public meeting to gather input on the development of the state’s integrated climate change response strategy will be held:

December 10th, 2009
5:30 – 7:30 p.m.
Wenatchee Public Library
310 Douglas St.
Wenatchee, WA 98801

In 2009, the Washington legislature passed Senate Bill 5560 directing the Department of Ecology to partner with the Departments of Agriculture, Commerce, Fish and Wildlife, Natural Resources, and Transportation “to develop an integrated climate change response strategy to better enable state and local agencies, public and private businesses, nongovernmental organizations, and individuals to prepare for, address, and adapt to the impacts of climate change.” The strategy is due to the Legislature in December of 2011.

The agencies are requesting initial feedback from the public. These meetings will be used to provide an overview of the strategy framework, provide background on the need for such a strategy for Washington State. Check the DOE website for more information: http://www.ecy.wa.gov/climatechange/adaptation.htm.

New Rules for Harvesting Rainwater - Former President Publishes Article

Past AIA/WA President, Timothy Buckley, of Greenstone Architecture, recently published an article on rainwater harvesting in the Vancouver Business Journal. Although the collection and use of rainwater is beneficial to the environment, Washington architects have had a hard time getting rights to harvest it.

In his article Buckley notes, “for years, the region's green building community has been working with the DOE and the State Legislature to get the rules changed. Unlike our neighbors in Oregon, developers wishing to harvest rainwater in Washington were required to wade into a state water rights permit backlog - considered by many to be a futile effort.” However, as Buckley details further, some difficulties with water rights are changing.

You can read about all the new policies that are changing the rules on water harvesting and the entire article here.

AIA|WA Annual Meeting Held - Resources Available

The AIA|WA held a successful Annual Business Meeting last Friday, November 13, at the award winning TOC Conference Center in Everett.

Presentations included the Tacoma Commuter Rail System, Architects and Disaster Assistance, and an overview of the 2010 Legislative Priorities for Washington Architects, and more.

Delegates voted in a new president, Jon Hopwood, AIA, (AIA Central Washington) and secretary/treasurer. The new secretary/treasurer is Lois Wardell, AIA, (AIA Central Washington) who also received the Jennie Sue Brown Award for her long dedication to the profession and AIA|WA.

For pictures, details about the meeting, and resources on all the above presentations, click here to visit our website.

AIA Architects Recommend Changes to Port Angeles

The Peninsula Daily News reported that the “city of Port Angeles is working its way through the 85 recommendations made by the American Institute of Architects to determine which ones are feasible to undertake now and which should be put into long-term plans”.

The article goes on to note that there are some dramatic suggestions from the AIA that include - to "decouple" First and Front streets and make them both two-lane roads which will reconfigure how bicycles and pedestrians navigate the city.

You can read all the AIA Architect's recommendations in their report here , or visit the city's Web site at http://tinyurl.com/ybzpbsm.

This report, based on a three-day visit from a six-member AIA design team in March, was funded by a $15,000 grant and $5,000 from the city. The city has selected 30 of the recommendations as feasible to do in the near future.

You can read the entire article here.

2009 Election Update

While all of the ballots have been cast, most likely less than half have been counted. Washington’s vote-by-mail system significantly prolongs elections on the beginning and end of Election Day. In fact, Election Day has truly just become “Organize the ballots and count a few day.”

Nevertheless, some elections are clear enough to be called. To learn more about the Washington State General Election Results visit the Secretary of State at: http://www.secstate.wa.gov/.

Republicans Sweep Legislative Races

There were three legislative races held this year (all special elections) in the 9th 15th and 16th Districts.

The 9th District had two Republicans face-off in a “top two” election. Businesswoman Susan Fagan won that election. Notably, she is employed at Schweitzer Engineering and has links to the design profession.

In the 5th District, appointed incumbent, David Taylor, was easily re-elected. Of course, it didn’t hurt that his Democratic opponent dropped out of the race, endorsed him, and then moved to California.

The only seat to switch parties was the 16th District; where appointed incumbent Laura Grant (D) lost to Terry Nealy (R), who has roughly 58 percent of the vote.

This is the second consecutive election where the Washington House Republicans have gained a seat.

Architects Get Mixed Results in their Elections

There were several races with AIA members or other architects on the ballot.

The most notable race is for Tacoma Mayor; where Jim Merritt, FAIA, is locked in a tight battle. He trails by less than one percentage point, 117 votes. There are too many ballots that remain uncounted to determine the outcome of the Tacoma Mayoral race. It could take days, or even more than a week, for this race to be decided.

David Cooper, AIA, is winning re-election to be Mayor of Yarrow Point with about 66 percent of the vote.

Cynthia Richardson, AIA, was unopposed for her reelection to the Anacortes City Council.

John Cheney, AIA, is losing his reelection bid for Mount Vernon City Council. He has served on the council since 1985.

In the general election the final Washington architect of note, but non-AIA member, is Patsy Bonincontri. Bonincontri is running for Bellevue City Council. She was appointed to the position and is trailing at 48 percent. However, there is still a large number of ballots to be counted.

Ballot Measures

There were two, high-profile, statewide, ballot measures and a few local measures that the AIAWA tracked.

Initiative 1033 would have limited tax increases and required voters to approve new taxes. It is garnering only 44 percent of the vote and is expected to fail.

Referendum 71, “concerning rights and responsibilities of state-registered domestic partners” is narrowly passing with 51 percent of the vote. The election is very close and it is difficult to know the fate of this measure until more votes are counted.

In Spokane, three measures creating a “community bill of rights” are failing badly. This package of measures included many anti-business and anti-development provisions. Proposition 4, the main measure, was losing with over 75 percent of voters rejecting it.

In Seattle, the AIA Seattle supported, Proposition 1 is passing with 64 percent. The proposition creates a seven year property tax increase to “fund affordable housing and other housing needs of low-income households.”

National Results

Nationally, the Republicans won three key elections: the Virginia Governor, the New Jersey Governor and the New York City Mayor. These elections are seen as pivotal due to historical data. These elections often signal changes in party leadership.

Four years ago several Democrat wins in Virginia and New Jersey were seen as a repudiation of President George W Bush’s politics. The following year, Democrats had gains in the US House and Senate.

In 1993, Republican victories in these races were a harbinger of a Republican landslide in the 1994 midterm election. The midterm election, held during President Bill Clinton’s first term, led to more than a decade of GOP Control in the Congress. This year’s election results could be a cautionary flag to the Democrats and President Obama.

Don’t Forget to Support the Architects PAC for Washington

While the 2009 election season is rapidly receding, the AIAWA and the Architects PAC are preparing for 2010. In 2010, the entire Washington House and half of the Senate will be up for election. These races are getting more expensive every year. If AIAWA is to continue to have legislative success, then we must prepare for electoral success with the right candidates.

Your financial contribution to APAC helps us to project a strong image of the AIA to legislators and candidates. Previous success in electing architect-friendly lawmakers has resulted in legislative success. You can support APAC online at http://www.aiawa.org/apac.html.

Your Opinion is Needed

Would a materials research lab, geared toward design professionals, be a useful resource for you? An AIA architect, the Portland Development Commission, and an extensive group of professionals in various design disciplines (architectural, industrial, apparel, etc) are working to answer that question.

A survey has been created to gauge interest for the lab amongst professionals. The AIAWA felt that making this survey available could be valuable to the profession.

The survey aims to uncover the feasibility of establishing a materials lab in the western United States. Establishment of a lab is the first step in a larger vision to develop a Creative Exchange on the west coast. The survey should only take a few minutes to complete.

Please click here for the survey (or cut and paste this address: https://lcb.qualtrics.com/SE?SID=SV_a5EXe3thMyZ1Igc&SVID=Prod)

Feel free to forward this survey to other professionals, friends, colleagues, and organizations/associations in the creative industries

The Seattle Housing Levy

Since, AIA Seattle is dedicated to promoting sustainability in the built environment they urge a YES vote for Proposition 1, the Seattle Housing Levy, also known as Yes for Homes.
Renewal of the Housing Levy will:

• Provide 1,850 affordable homes serving thousands of families and individuals over the next 50 years.
• Continue to help our most vulnerable neighbors including seniors, people with disabilities, victims of domestic violence and working families.
• Create design and construction jobs that are sorely needed in our community.

Successful passage of the 2009 Housing Levy is especially relevant to the architectural community in the following ways:

Jobs and the Economy
An inflow of affordable housing projects can assist the architectural community through one of the toughest times in our industry and help provide jobs for the thousands both in architecture and our allied professions to help spur our economy and keep Seattle moving.

Livable Communities
Seattle architects are dedicated to promoting livable communities beyond the building envelope. Livable communities include a wide variety of housing for all income levels.

Civic Engagement
The spirit of civic education and engagement is encouraged and applauded within the architectural profession and has been formally adopted as a profession-wide policy. Support of the Seattle Housing Levy is a natural extension of the work of civically-engaged architects in increasing the quality of life in our communities.

If you would like more information about AIA Seattle’s stance on Proposition1 please visit: www.aiaseattle.org.

Seattle Firms Recognized for their Forward-thinking Approach to Urban Living

During the last weekend of September, eleven projects from Seattle architects were recognized for designs that answered the question: What is the future of urban living and where does architecture fit in?

The architecture firms were recognized during FutureShack; which was held in conjunction with residential architect magazine's Reinvention Symposium, in Seattle. The program boasted 300+ attendees and Steve Scher, of KUOW’s Weekday, as the moderator.

FutureShack is a new residential architecture program that celebrates progressive solutions for urban living across a wide range of building types, budgets, constraints, and social agendas.

Submittals were from around the region and were judged by two separate juries - one comprised of outspoken members of the public and another comprised of design professionals.

An online gallery of all 73 projects submitted by local firms can be found here: http://futureshack.aiaseattle.org/.

The juries of design professionals and non-design professionals picked the eleven winners from these 73 projects because their approach soared beyond typical residential design.

The eleven recognized firms are:

• ruffcorn mott hinthorne stine
• The Miller/Hull Partnership
• GGLO
• Prentiss Architects
• b9 Architects
• Workshop Architecture Design
• Bohlin Cywinski Jackson
• SMR Architects
• Adams Mohler Ghillino Architects
• Johnston Architects
• Ross Chapin Architects
  
  
  

L&I Holds Public Hearings on Proposed Workers' Comp Rate Increases

The Department of Labor and Industries (L&I) announced an increase to workers’ compensation insurance premiums for 2010; however they are lower than predicted. The expected average increase was to be 15-20% next year. L&I Director Judy Schurke today proposed an average increase of 7.6%.

“We have pushed this proposed rate increase down to the lowest possible level given the uncertain state of our recovery from this deep recession,” Schurke said.

With an increase of 7.6 percent, average premiums would go up by about 4 cents per hour worked. The proposed increase is an average for all Washington employers. Individual employers could see their rates go up or down, depending on their recent claims history and changes in the frequency or cost of claims in their industry.

You can attend a public hearing to comment before the final 2010 rates are adopted. There are six hearings that will be held in different areas across the state. You can attend a hearing in/on:

• Tukwila: Oct. 27, 1 p.m., L&I Office, 12806 Gateway Dr.
• Tumwater: Oct. 28, 10 a.m., L&I Headquarters, 7273 Linderson Way S.W.
• Vancouver: Oct. 28, 10 a.m., Red Lion Inn at the Quay, 100 Columbia St.
• Bellingham: Oct. 29, 1 p.m., Bellingham Quality Inn, 100 E. Kellogg Road
• Spokane: Oct. 30, 9 a.m., Spokane Airport Ramada, 8909 W. Airport Dr.
• Richland: Oct. 30, 2 p.m., Richland Hampton Inn, 486 Bradley Blvd.

Written comments, accepted through Nov. 7, may be e-mailed to Ronald Moore, Employer Services Program Manager, or mailed to him at the Department of Labor & Industries, P.O. Box 44140, Olympia, WA 98504-4140. Faxed comments should go to 360-902-4729.

WA Supreme Court Dealt Blow to Tort Reform

Today the LRC issued a press release that discussed the results of the recent State Supreme Court decision, Putman v. Wenatchee Valley Medical Center. The decision effectively ends the certificate of merit statute.

The AIAWA is one of the founding members of the Liability Reform Coalition (LRC) and a longtime advocate for certificate of merit, which has been enacted in a dozen states.

What the certificate of merit does in the physician liability system is require a plaintiff to provide a qualified expert, at the time of filing a lawsuit. The expert must be willing to state there is a probability that the defendant's conduct did not meet the required standard of care.

The State Supreme Court tossed out the certificate of merit declaring it unconstitutional. It’s noteworthy that the trial court found not having a certificate of merit unconstitutional - the opposite ruling. The LRC writes, "In the 2006 legislative session, personal-injury lawyers and physicians negotiated several modest liability reform measures, one of which was the certificate of merit. Over the past three years these reforms have incrementally aided in the fight to end lawsuit abuse in the medical liability arena."

With the certificate of merit no longer required the door for frivolous law suits has been opened. The AIAWA was considering seeking a certificate of merit law for design lawsuits; this now seems like an impossibility. You can read the entire ruling by the court here.

Pending U.S. Legislation that will Affect Energy Codes.

According to an article written by Architecture 2030, the current U.S. House Bill, H.R. 2454: American Clean Energy and Security Act of 2009, is vital to AIA goals. The bill was passed by the House and is now on the U.S. Senate floor pending a vote.

The article highlights just how important the passage of this bill is, “ No matter what else is compromised or changed in the climate bill working its way through the Senate, Section 201 must not be changed or weakened. Why? Because all other energy and emissions reduction approaches pale in comparison to what Section 201 will accomplish. Without it, we simply cannot meet the greenhouse gas (GHG) emissions reduction targets called for in the bill. We won’t even come close.”

The article goes on to highlight how the new building energy codes will change current standards. You can read the entire article here.

Pending Rulemaking on Renewable Energy

The Department of Revenue is holding a public meeting regarding Renewable Energy System Cost Recovery (Rule 273 - WAC 458-20-273).

The meeting will be held:
September 22, 2009 @ 10:00 AM
WA State Criminal Justice Training Commission (WSCJTC)
19010 - 1st Avenue South
Burien, Washington 98148

The public meeting will examine amendments to Rule 273 due to the passage of Senate Bill 6170, which is the new legislation that amended the rule.

The effects of the new legislation are:
(1) increases the annual payment limitations to consumers,
(2) increases the limitations on the incentive payments made by participating light and power businesses,
(3) changes the formula used to determine payment amounts based on "economic development kilowatt-hours," and
(4) extends the incentive program to community solar projects.

You can see the agenda for the meeting and find out additional information by clicking here.

Architects Put Themselves Before the Voters

Two architects went before the voters in last Tuesday’s primary election. While they were not successful in making it past the primary, they put important issues before the voters.

Marty Kaplan, AIA, was in a tough three-way race for Seattle City Council. He was running against an entrenched incumbent and a popular challenger. He was able to garner about 15% of the vote. Marty put issues on the table that other candidates were not able to articulate, such as city planning and development’s impact on jobs, economic development and strengthening of neighborhood communities.

Matt Gregory, AIA, was also in a difficult three-way primary race for Kirkland City Council. He received roughly 24% of the vote. Matt was successful in getting the endorsement of the Seattle Times. The Times noted Gregory’s experience as an architect and on the planning commission as making him well qualified for the post.

Theodore Roosevelt once said, “It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena…”

The AIA|WA congratulates Marty and Matt for being courageous enough to put themselves in the arena, for tackling the tough issues in their communities and for putting positive visions before the voters. While they may not have found success before the electorate, their communities are better for them having been in their races.

Another architect running for local office this year, Jim Merritt, FAIA, did not have a primary in his bid for Tacoma Mayor. He automatically advances to the general election in November. You can follow his campaign efforts at his website: http://www.merrittformayor.com. You can also listen to an online interview with Jim at http://themelononline.com/podcast/2009/JimMerrittFINAL.mp3. In the interview he discusses how his work as an architect positively impacts the community and prepares him for public service.

Are you interested in supporting quality candidates for public office? You can through the Architects PAC. APAC researches candidates running for office in Washington State and supports those who can best help implement the larger vision for Washington architects. Read more about APAC and how you can support its efforts at: http://www.aiawa.org/apac.html.

New Law Impacts State Funded Residential Projects

A new law, effective 07/26/09, amends RCW 39.12.030 regarding awarding agency public works contract specifications. The law states: if an agency grants a contract and concludes the work entailed fits the definition of residential construction the contract must state that. [See SB 5903. A link to the law is provided below.]

The law also states that if workers on a project were paid residential minimum wage rates and its later determined that the project is actually considered commercial construction then all workers on the project must be paid the difference between residential and commercial minimum wage.

L&I stated that it “encourages agencies to exercise caution in designating residential construction rates in contract specifications, and is available to provide assistance on the issue.”

You may find a review of Prevailing Wage Policies 11242008, 10272008, and 07282008 helpful. You may access these policies through the links provided below. For further information, please contact L&I, Prevailing Wage, at pw1@Lni.wa.gov or 360-902-5335.

Links:

The New Law, Senate Bill 5903

Prevailing Wage Policies
11242008 (PDF)
10272008 (PDF)
07282008 (PDF)

Honored AIA Member Passes

Evan Cruthers, FAIA, retired President and CEO of Media Five Ltd., passed away after a long illness in Port Angeles, Washington, on July 23, 2009.

Cruthers was greatly involved in AIA activities. In 1987 he served as the President of the Hawaii Component; in 1990 became a member of the AIA National Board; and in 1991 was elected Region Director at the Whistler, B.C. Region Conference. He served alongside James R. McGranahan, FAIA as junior director. In 1993 he assumed the position of senior director.

For 28 years Cruthers worked for Media Five Architectural firm. He started there in 1972 and retired as President and CEO in 2000. Cruthers was the catalyst for the firm’s international growth into Japan, Australia and California. With his work on the USS Arizona Hall, Cruthers was one of the first architects to recognize sustainability. He will be deeply missed.

Cruthers is survived by his wife and family. Donations may be made in his name to 1st Presbyterian Church of Port Angeles, 139 W. 8th Street, Port Angeles, Washington 98632.

NGA Endorses 2030 Goals

The AIA has received press coverage from the New York Times regarding its 2030 goals. What garnered the attention of the paper was an endorsement by the National Governors Association (NGA) as part of their resolution on energy efficiency.

Washington State was at the forefront of reducing greenhouse gas emissions with the passage of Senate Bill 5854 during the 2009 Legislative Session. Governor Gregoire announced shortly after signing the bill that she would be taking the new legislation to NGA meeting so that other states could effectively mirror it.

With NGA’s resolution a new push for every state to implement a carbon neutral construction code will begin. You can read the NY Times article here.

Sales Tax to be Applied to Online Services

Beginning July 26, 2009, you will need to start paying closer attention to the services you use online. With the passage of Engrossed Substitute House Bill (ESHB) 2075, sales or use tax will be due on digital products ranging from downloaded music to streaming video.

The bill clarifies how taxes apply to products that exist only as computer bits and bytes. Specifically, it:

• Defines digital products as goods and services transferred electronically.
• Includes certain exemptions for businesses and end consumers.
• Requires sellers of digital products to electronically file their tax returns.
• Provides amnesty to those who didn’t collect or pay sales or use tax on digital products that were taxed before July 26, 2009.

What digital products are subject to tax?
While downloaded digital goods (music and movies, etc.) have always been subject to sales or use tax, ESHB 2075 applies sales or use tax to all digital products, regardless of how they are accessed (downloaded, streamed, subscription service, networking, etc.).Digital products subject to sales or use tax include:

• Downloaded digital goods (music and movies, etc.)
• Streamed and accessed digital goods
• Digital automated services (DAS)

The bill also covers remote access software (e.g. application service providers), which is now subject to sales and use tax too. It does not matter if the purchaser obtains a permanent or nonpermanent right of use. If you have questions about what this bill applies to, how it will be enforced, what is exempt and more you can visit the Washington State Department of Revenue’s question and answer webpage.