HB 1751
In CommitteeHouse
Course materials sales tax
Establishing a sales and use tax exemption for required course materials at public institutions of higher education.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill removes sales and use taxes on required course materials (like textbooks and digital resources) for students at Washington’s higher education institutions, provided they show proof of enrollment and buy from approved vendors. It also requires schools to inform students about the exemption and clarifies how the exemption applies to both physical and digital materials.
- Exempts sales of required course materials (textbooks, digital resources, etc.) from Washington’s retail sales tax for students enrolled at higher education institutions, provided they show student ID, proof of enrollment, and buy from approved vendors.
- Exempts the use of such materials from Washington’s use tax, even if purchased out-of-state or online.
- Requires institutions of higher education to inform students about the tax exemption via their websites and course syllabi.
- Defines 'required course materials' broadly to include both physical and digital instructional content required or recommended by instructors for credit-bearing courses.
- Limits the exemption to purchases made through campus-affiliated bookstores, institution-designated online vendors, or other retailers that verify student status and course requirements.
Who is affected
- Students — Students enrolled at public or private higher education institutions in Washington will no longer pay sales or use tax on required course materials (e.g., textbooks, digital resources) when purchasing them through approved channels, reducing their out-of-pocket costs.
- Institutions of higher education — Public and private colleges and universities in Washington must ensure students receive information about the tax exemption and verify student status and course enrollment at time of sale.
- Retailers selling course materials — Bookstores (including campus-affiliated and online vendors) and other retailers that sell required course materials must verify student status and enrollment to apply the exemption, potentially affecting their sales processes and systems.
- State agencies — State agencies like the Higher Education Office and Department of Revenue will need to coordinate on implementation, guidance, and enforcement of the new exemption rules.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (3)
Students—especially low- and middle-income students—will directly reduce out-of-pocket costs on required course materials, which are often purchased with financial aid that could otherwise cover housing, food, or transportation; this improves affordability and may reduce course withdrawal or non-completion due to cost.
FinancialPeopleRef: Sec. 2(1); Sec. 3Mandatory student outreach about the exemption improves transparency and may increase utilization, especially among first-generation and low-income students who may not otherwise know about the benefit.
EducationPeopleRef: Sec. 2(2)(a)-(b)Broad definition of 'required course materials' to include digital resources helps ensure equitable access to modern learning tools, particularly for students with disabilities or those in remote/hybrid programs.
EducationLean peopleRef: Sec. 2(3)(c)
Potential Concerns (1)
The state will lose meaningful sales and use tax revenue from required course materials purchases, estimated in the hundreds of millions of dollars annually, which reduces public funding available for education, healthcare, transportation, and other core services that everyday Washingtonians rely on.
FinancialPeopleRef: Sec. 2(1)(c); Sec. 3
Who Is Most Affected
Low- and middle-income students benefit most: they face acute cost pressure, often choose between textbooks and basic needs, and rely heavily on financial aid. The tax exemption directly increases their disposable income for other essentials. However, students at high-cost institutions or those purchasing outside approved vendors may not benefit fully.
Campus-affiliated bookstores and institution-designated vendors may see increased volume but lower per-unit margins due to tax-exempt pricing; they also face new compliance burdens (e.g., verifying enrollment and course requirements). Large national retailers not integrated with institutions may be excluded, reducing competition but also limiting student choice.
Public institutions gain credibility for student affordability efforts, but must invest staff time and IT resources to implement website/syllabus disclosures and vendor verification systems. Private institutions face similar obligations but may lack infrastructure to verify student status at scale.
State agencies (DOR, Higher Education Office) will need to issue guidance, train local auditors, and monitor compliance—costs that may strain already limited resources. However, the policy aligns with existing student-success goals and may reduce long-term remediation costs.
Digital content providers (e.g., publishers of e-books, platforms like Pearson, Macmillan) may benefit from increased adoption of digital materials—especially since the bill explicitly includes digital resources—but may also face pressure to lower prices to remain competitive under tax-exempt pricing. Large publishers with in-house platforms may gain advantage over smaller vendors.