It is done.
Governor Ferguson just signed into the law two bills (ESSB 6346 Millionaire Tax and ESSB 6113 Tax Administered by the Department of Revenue) that contain retail sales tax exemptions for music education.
ESSB 6346 (Millionaire Tax) has the following provisions:
- Live Presentations clause will be completely phased out on January 1, 2029.
- Effective July 1, 2026, “Live Presentations” no longer include
- Presentations given by a nonprofit organization exempt from federal income tax under Title 26 U.S.C. Sec. 501(c) of the federal internal revenue code;
- Musical, dramatic, comedic, or similar performances, including any incidental instruction;
- One-on-one instructional activities including tutoring and consulting; and
- Music lessons regardless of the number of participants.
In addition, public libraries, library districts, library service centers, K-12 schools, school districts, and educational service districts are no longer subject to the Live Presentations clause.
Please note that group music lessons are still taxable until June 30, 2026. However, the Department of Revenue has extended its exemption period for those with pre-existing contracts (signed before October 1, 2025) from April 1, 2026 to June 30, 2026, effectively eliminating the tax obligations on pre-existing contracts entirely.
The latest DOR guidance is at: https://dor.wa.gov/forms-publications/publications-subject/special-notices/live-presentations-new-exclusions-retail-sales
Millionaire Tax most likely will be subject to legal challenges and the initiative process. However, the above exemptions are crafted such that if the Millionaire Tax is held invalid, the exemptions are not affected.
ESSB 6113 (Taxes administered by DOR) has the following provisions:
Effective prospectively and retroactively to October 1, 2025, “Live Presentations” do not include:
- Presentations given at churches;
- Youth camps.
It has been a successful legislative session for the music education community. All legislators, regardless of their party affiliation, supported the efforts to exempt group music lessons, even if they might have voted against the Millionaire Tax bill. (There were also bipartisan contingency plans from both the House (HB 2257) and Senate (SB 6351) to save the music education should the Millionaire Tax bill fail.) Legislative staff also kept eyes out for us. (There are quite a few singers among the legislative staff!) If you have been in communication with your legislators, please take a moment to write an email thanking them for the bipartisan effort to exempt group music lessons from retail sales tax. Music was a common ground uniting both parties.
Special thanks to the Seattle Theatre Group, Inspire WA, Musicians Association of Seattle/AFM, WSMTA, WMEA, WA State Thespians, Suzuki Association, Student Orchestras of Greater Olympia, Joyful Academy of Music, and many other organizations and individuals for supporting this effort.