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‘It's unbelievable': Small businesses fed up with sales tax law in Washington as legal challenge looms
‘It's unbelievable': Small businesses fed up with sales tax law in Washington as legal challenge looms

Geek Wire

time28-05-2025

  • Business
  • Geek Wire

‘It's unbelievable': Small businesses fed up with sales tax law in Washington as legal challenge looms

(Bigstock Photo) Curtis Costner spent Memorial Day Weekend on a trip with his father in Utah. As they passed through the so-called Silicon Slopes, he saw signs of a growing tech economy. 'There's a lot of talent, a lot of infrastructure,' Costner said. 'The state seems friendly and supportive and they would value what we do.' He can't say the same about his home state. Costner is president of Sands Costner, a digital marketing firm based in Tacoma, Wash., and one of many businesses affected by a sweeping new tax. Last week, Gov. Bob Ferguson signed Senate Bill 5814, which expands Washington's retail sales tax to include advertising agencies, software development firms, IT support providers, and other digital service businesses. It's one of several new taxes on businesses aimed at addressing the state's $16 billion shortfall. Curtis Costner, president at Sands Costner. (Sands Costner Photo) Starting in October, these companies will be required to collect sales tax — more than 10% in the Seattle area — on their services. Costner said the tax could prompt clients to seek out-of-state providers. 'It makes it harder for local businesses to work with other local businesses,' he said. John Rubino, partner at Seattle-based agency GreenRubino, said he's worried about local clients — including nonprofits and small businesses — who may not be able to absorb the added cost from the tax. 'They're just stuck with it,' Rubino said. 'It's unfair and it seems unreasonable. It's unbelievable.' Democratic lawmakers introduced the bill in mid-April. It passed just eight days later, near the end of the legislative session in Olympia. Rubino and Costner both feel blindsided and targeted by the legislation, which applies to digital advertising — but excludes physical ads such as billboards or newspaper placements. 'That's a completely unfair tax treatment,' Rubino said. Legal challenges to the bill are 'ripe and appear inevitable,' according to tax law experts with McDermott Will & Emery. In a blog post last week, they cited the federal Internet Tax Freedom Act, which prohibits states from 'discriminatory taxes on electronic commerce.' 'Taxing digital advertising services while expressly excluding offline media places the new law on a collision course with ITFA,' the lawyers wrote. 'A legal challenge is all but guaranteed.' Aaron Johnson, a tax lawyer with Ballard Spahr in Seattle, agreed. 'ESSB 5814 creates some serious concerns with the Internet Tax Freedom Act,' he said via email. John Rubino, partner at GreenRubino. (GreenRubino Photo) Washington is one of the only states to broadly tax digital ads. Maryland passed a similar law in 2021 that is still under litigation. That law applies to only companies with at least $100 million in annual revenue. 'If it was a great idea, every state in the country would be doing this,' Rubino said. Washington lawmakers frame their bill as a way to tweak the state's tax system as the economy shifts toward services and digital products. 'The legislature recognizes that our state and nation have moved away from a predominantly goods-based economy towards a more service-based economy,' the bill reads. 'As a result, Washington's tax code, which is heavily reliant on sales taxes, continues to reach a narrowing share of economic activity subject to the retail sales tax.' Sen. Noel Frame (D-Seattle), who co-sponsored the bill, called the law a 'good government update to make our tax code more appropriate for the 21st century.' 'As more and more of our economy happens with computers and technology, this bill is doing the work to modernize the tax code to match,' Frame said during a Senate floor debate on April 19. Washington is one of a few states without a personal or corporate income tax. Most state revenue comes from sales, property, and B&O taxes — a system critics say disproportionately burdens lower-income residents. Rubino said he supports tax reform — just not this version. 'What they're doing is not helping the regressive tax system — it's regressively hurting small business,' he said. Emily Vyhnanek, associate director of campaigns at the progressive think-tank Budget & Policy Center, said her group was disappointed that a proposed statewide wealth tax and new payroll tax — which drew strong opposition from companies including Microsoft — did not ultimately pass. 'Both of those would have been truly progressive ways to generate revenue,' she said. SB5814, which also includes a tobacco tax on Zyn packs, is expected to raise approximately $1.1 billion over the 2025-27 biennium. Revenue will fund education, health care, and social services. Gov. Ferguson last week also signed House Bill 2081, which increases the state's business and occupation tax rate, and the 'advanced computing surcharge' paid by major tech companies such as Microsoft and Amazon. It's unclear whether the sales tax expansion bill will affect advertising or marketing businesses within larger tech companies. Costner said he's contemplating next steps for his 12-person company — including paying for a tax compliance expert or even a potential relocation. 'Either way, both those options are very costly for a company like mine,' he said, adding: 'Can we just get back to work and do the creative that we're good at?'

Domo Named to the Women Tech Council Shatter List for 8th Consecutive Year
Domo Named to the Women Tech Council Shatter List for 8th Consecutive Year

Associated Press

time27-05-2025

  • Business
  • Associated Press

Domo Named to the Women Tech Council Shatter List for 8th Consecutive Year

SILICON SLOPES, Utah--(BUSINESS WIRE)--May 27, 2025-- AI and data products company Domo (Nasdaq: DOMO) announced today that the Women Tech Council (WTC), a national organization focused on increasing the number of women in technology, named Domo on its Shatter List for the eighth year in a row. 'No single company has arrived at the finish line for promoting and engaging women in tech, but many are making important and impactful efforts that are creating progress throughout the economic pipeline,' said Cydni Tetro, WTC president. 'Recognizing this progress and elevating the best practices spurring it drives momentum and accelerates the path to change for the entire tech community.' The WTC Shatter List spotlights companies that are taking measurable action to ensure women continue advancing—leading teams, shaping innovation, and building the future of the tech industry. Domo continued to stand out in what WTC identifies as a company's commitment to key areas including executive engagement, company programming, and community investment. Domo is committed to building and maintaining a culture that allows women to succeed and achieve upward mobility. This includes being a proud participant in the ParityPledge, which creates greater advancements and opportunities for women and people of color. Domo also invests in its employee resource group, Women at Domo, which gives women in the organization a chance to network, mentor, support, and advocate for each other. Domo has been recognized for its unique benefits to help support working mothers and caregivers, such as a $2,000 maternity wardrobe stipend, $1,000 new baby benefit, and 100% paid leave for a mother's final month of pregnancy. 'It is humbling to once again be named to the Women Tech Council Shatter list this year, showcasing Domo's ongoing commitment to attracting and advancing top talent,' said Madison McCord, CHRO at Domo. 'In addition to our mentoring program, community initiatives, and unique benefits that support our employees and their families, Domo's work to drive innovation in AI and data is fueled by our passionate team, who are dedicated to helping our customers deliver immeasurable impact for business.' To learn more about the Shatter List, visit: To learn more about working at Domo, visit: About the Shatter List The Shatter List was created as part of Women Tech Council's commitment to spotlight and accelerate the impact of companies actively advancing women in tech. This list recognizes organizations building high-performing cultures where women can thrive, contribute, and lead at every level. Companies are evaluated across four key areas proven to create momentum in breaking the glass ceiling: executive engagement, company programming, community investment, and women's representation and advancement. Recognition on the list is based on measurable impact and data-backed outcomes that reflect visible, ongoing efforts to support women in tech roles from entry level to the executive suite. For more information about the Shatter List process please visit About Domo Domo is an AI and Data Products platform that helps companies of all sizes leverage data and AI to drive value in today's data-driven world. Built around our customers' preferred data foundation, powered by our award-winning solution, and enriched with our partner ecosystem, the Domo platform enables users to prepare, visualize, automate, distribute and build end-to-end data products that provide solutions across the entire data journey. From hydrating your data foundation, to building fully embedded applications that can be shared with your employees and customers, to deploying AI models across a variety of providers, Domo gives users the ability to build data products that generate measurable value for the business. For more information, visit You can also follow Domo on LinkedIn, X, and Facebook. Domo is a registered trademark of Domo, Inc. View source version on CONTACT: Cynthia Cowen [email protected] KEYWORD: UTAH UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: TECHNOLOGY WOMEN HUMAN RESOURCES PROFESSIONAL SERVICES SOFTWARE DEI (DIVERSITY, EQUITY AND INCLUSION) DATA ANALYTICS CONSUMER DATA MANAGEMENT ARTIFICIAL INTELLIGENCE SOURCE: Domo, Inc. Copyright Business Wire 2025. PUB: 05/27/2025 04:05 PM/DISC: 05/27/2025 04:05 PM

Cinephiles scoff at Utah leaders' plans to replace Sundance with a new film festival
Cinephiles scoff at Utah leaders' plans to replace Sundance with a new film festival

Axios

time01-04-2025

  • Entertainment
  • Axios

Cinephiles scoff at Utah leaders' plans to replace Sundance with a new film festival

Some movie lovers are cracking wise at Utah leaders' efforts to replace the illustrious Sundance Film Festival now that it's leaving the state. The big picture: Festival organizers said last week that they're leaving Park City for Boulder, Colorado's infrastructure and cost advantages. Yes, but: The announcement came on the heels of a debate over whether Sundance clashed with Utah's conservative politics and culture. Driving the news: Shortly after Sundance's decision, Gov. Spencer Cox said state leaders "have already begun meeting with partners, stakeholders, and creative voices to create a new festival — one that honors our legacy." Ryan Smith, who owns the Jazz and Utah Hockey Club — and whose downtown sports district is getting up to $900 million in public funds, dwarfing the $3.5 million lawmakers offered to Sundance — jumped in to promise support for "a fresh new experience starting from scratch." Silicon Slopes, the nonprofit that promotes Utah's tech industry, offered its help, too. Reality check: After four decades, Sundance is widely considered the most prestigious film festival in the country and among the world's " Big Five" cinema events. The other side:"Fine, Utah will just make its own internationally famous independent film festival," chortled entertainment site the A.V. Club. "Finally, Utah indie film can flourish without Sundance's massive prestige and fame and popularity and money overshadowing it." "Sundance was Sundance. You don't replace that with soulless corporate/government sanitized hogwash," state Sen. Nate Blouin (D-Salt Lake City) posted on X. Context: After reports that festival organizers objected to Utah's new ban on pride flags in public buildings, some conservatives urged Sundance to leave. State Sen. Dan McCay (R-Riverton) said Sundance films promote "porn," "alternative lifestyles" and "anti-LDS themes." Between the lines: Festival organizers said they evaluated each prospective city's "ethos and equity values" and praised Boulder's "welcoming environment." They noted that they wanted "a community rooted in independent thought, artistic exploration, and social impact." What they're saying: Sundance fans in Utah and beyond took to social media to envision a film festival that wouldn't invite ire from the right. "Prepare yourself for blockbuster breakouts like: 'Hold the Fluoride,' 'MLMs are God's Miracle,' 'Tops in Natural Beauty and Plastic Surgery,' 'We Take Pride in Being Anti-Pride Flag,' [and] 'Still Trying to Convert Park City,'" one wrote on Instagram's Threads. "Can't wait for something that's inevitably marketed as a "Sundance alternative" and it's chock full of Tim Allen and Jim Caviezel right wing fairytales," another predicted on X. "What is it going to show? Angel Studios films and Hallmark movies?" another asked on Facebook. Angel Studios is a Provo film production company that emerged from VidAngel, an entertainment-censoring service that was discontinued after multiple Hollywood studios sued, alleging copyright violations.

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