Recap: Founders Roundtable on SB 5814
AAF Seattle Administrator
On August 28, AAF Seattle hosted the first Founders Roundtable of the year — a gathering of industry leaders from across Seattle’s advertising, communications, media, and creative industries. The focus: SB 5814, Washington’s new digital and tech services tax bill, and its far-reaching implications for how agencies operate, price, and invoice.
This event was more than a meeting — it was an opportunity for our community to come together, share perspectives, and begin to chart a collective path forward.
Key Themes from the Roundtable
1. Immediate impact on operations
Attendees voiced concerns about the practical challenges of implementing the tax: rebuilding invoicing systems, separating taxable vs. non-taxable services, training staff, and communicating changes to clients. Many anticipated higher overhead costs, disrupted contracts, and client confusion, with one group noting the likelihood that “clients pay more, get less, or leave.”
2. Competitiveness and long-term risks
A central theme was the uneven playing field this law creates between Washington-based firms and out-of-state agencies. Participants worried that local invoices will appear 10% higher, driving clients — especially cost-sensitive nonprofits and startups — to move their work elsewhere. The administrative burden of tracking where services are delivered and renegotiating contracts was seen as a significant risk for smaller agencies.
3. Advocacy and support needs
The group emphasized the importance of AAF Seattle’s role in supporting members through clear communication, advocacy templates, and ongoing forums for knowledge-sharing. Requests included legal/accounting guidance, model client communications, and coordinated messaging to legislators. Attendees agreed that a united front is essential to amplify the industry’s perspective in Olympia and beyond.
4. Collective ideas and solutions
Groups brainstormed both short- and long-term strategies:
Developing a shared fact sheet/FAQ and client-facing materials to reduce confusion.
Partnering with local chambers of commerce, civic organizations, and policy groups to broaden advocacy.
Collaborating with industries already mobilizing (e.g., Washington Filmworks).
Exploring collective compliance tools and shared resources to reduce cost burdens.
Focusing near-term efforts on shaping DOR guidance, seen as a quicker lever than legislative repeal.
Next Steps
Looking ahead, attendees outlined clear priorities:
Continue to press for clarity in DOR guidance (expected in early September).
Engage with AAF National’s Government Affairs team on litigation and legislative advocacy.
Mobilize through coordinated outreach to Washington State representatives.
Create ongoing opportunities for education, collaboration, and shared action.
Resources & Notes
We’ve compiled the full set of notes, questions, and group ideas from the roundtable into a resource deck:
👉 [View the deck from the Founders Roundtable]
Other resources
Engrossed Substitute Senate Bill 5814, Laws of 2025, Chapter 422 (ESSB 5814)
Interim guidance statement regarding changes made by ESSB 5814 for Advertising Services
Thank You
Thank you to all the community members who joined us for this critical conversation. Your candor, ideas, and collaboration are shaping how Seattle’s creative community navigates this challenge together.
Special thanks to C+C for hosting us for this important event.
Join the next conversation.
Register for our follow-up session, Navigating the New Digital Services Tax Law — SB 5814, on October 8, 2025, where we’ll review the DOR’s official guidance, answer questions, and continue building momentum.