Upcoming Sales Tax Changes on Classes & Events

Beginning  October 1, 2025, a new Washington State law (ESSB 5814) goes into effect that changes how sales tax is applied to cultural and live presentations across the state. This statewide law, passed to help address a projected $16 billion state budget deficit, applies to all cultural organizations, including nonprofits like Hugo House.  

Under this law, classes, seminars and workshops are considered live presentations subject to sales tax, whether they take place in person or online. Performances, readings, author events, and similar cultural programming generally fall outside this definition and are not subject to sales tax. 

 

What this means for the Hugo House community 

When you check out using our website starting  October 1, 2025, you’ll see sales tax automatically added to eligible purchases. This new sales tax will be added in the final step of the checkout process—after any membership discounts, coupons, and admin fees have been applied. 

Any purchases made before October 1, 2025 will not be subject to sales tax, regardless of when the class or event takes place.  

 

What to expect when purchasing…  

Classes

All in-person and online classes (including application-based programs like Book Lab) will now be subject to sales tax:  

• In-person classes will be taxed at the Seattle sales tax rate (10.35% as of October 1st, 2025). 
• Online & Online Asynchronous classes will be taxed based on your billing location. 
• Digital products, such a Writer’s Welcome Kit & Freelance Going Pro will be taxed based on your billing location.
• Free classes will not be subject to sales tax. 

Events 

Some, but not all events will now be subject to sales tax: 

• Ticketed events that aim to educate—including craft talks, panels, and workshop events—will now include sales tax. 
• Non-instructional events, such as Silent Reading Nights, book presentations, readings, and performances will not be taxed. 
• Free instructional events won’t be subject to sales tax. 

Coaching & Consulting 

One-on-one mentorship programs like Coaching & Consulting will not be subject to sales tax, since the law defines one-on-one instructional activities outside of the scope for taxation. 

Memberships 

Purchasing of memberships will not be subject to sales tax. Members will continue to receive member-rate tuition—10% off 8-session or less Hugo House classes, helping reduce the tax liability on eligible class purchases.  

Gift Certificates 

Purchasing of gift certifications will not be subject to sales tax. However, purchases made using gift certificates will be subject to sales tax for all classes and eligible events. 

 

What to expect when requesting… 

Payment Plans

• New payment plans set up on or after October 1, 2025 will include sales tax. Sales tax will be paid upfront and rolled into your first payment installment. Admin fees will not be taxed. 
• Existing payment plans created before October 1, 2025 will remain untaxed, as long as they finish before April 1, 2026 and the terms of the payment plan are not significantly altered (ex. extending the end date of a payment plan).  
• If an existing payment plan extends beyond April 1, 2026, future installments will be subject to sales tax. 

We will contact anyone affected individually if their plan needs adjustment. 

Scholarships 

Scholarships will now need to account for sales tax. When you apply, please request the amount you need based on tuition + sales tax, not just tuition. 

Refunds

If you receive a refund for a class or event, sales taxes will also be refunded. 

 

We know how important predictability is when planning for classes and events, and we also recognize that changes to cost can significantly impact our community. As we adapt to changing legislation, Hugo House remains committed to supporting writers and lifelong artists, with these realities front of mind. 

For more information about this new legislation, including what is taxable and what is not under this new law, please visit the Interim guidance statement regarding changes made by ESSB 5814 for live presentations from the Department of Revenue. 

If you have questions about how these changes may affect you, please reach out to us at welcome@hugohouse.org.