As you may recall, the 2009 legislature passed a sweeping law that applied sales tax to digital products, digital automated services (DAS) and remote access software. For Washington based sellers of digital products, DAS and remote access software, this law (HB 2075) turned them into "retailers" for tax purposes from service providers, lowering their B&O tax rate as well as shrinking the base of revenue on which tax is applied. For Washington state consumers and businesses who buy digital products, DAS and remote access software from Washington sellers, sales or use tax is applicable on those purchases, except in certain cases.
Because changing tax law is always complicated, amendments to the law were needed. The 2010 legislature passed HB 2620, found here: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=2620&year=2009 that made needed clarifications.
The Dept. of Revenue has updated their web page with the new changes, updated the Buyer's Exemption Certificate and published details of the 2010 changes: http://dor.wa.gov/content/getaformorpublication/publicationbysubject/taxtopics/digitalproducts.aspx
If you are either a buyer or seller of digital products, DAS or remote access software, please check DOR's website and published documents there to ensure you are in compliance. The final bill report for HB 2620 is attached.
If you have any questions, please contact me at Lmcmurran@washingtontechnology.org.