SSB 6351
In CommitteeSenate
School sales tax exemptions
Increasing fiscal resources for students and children by providing targeted sales tax exemptions for schools and certain before-and-after school care programs and arts and cultural classes.
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 state sales tax on a range of goods and services used by K–12 schools, before-and-after school programs, and arts/cultural nonprofits providing education to students. It aims to free up school funds for direct student use and lower costs for enrichment activities.
- Exempts sales tax on goods and services purchased by elementary and secondary schools (including public, private, and charter schools) for educational use.
- Exempts sales tax on before-and-after school care programs for school-aged children—such as tutoring, athletics, clubs, and outdoor education—when offered by schools or approved providers.
- Exempts sales tax on classes and programs provided by arts and cultural nonprofits (e.g., music, theater, visual arts) that serve K–12 students or the general public.
- Clarifies that sales tax does not apply to instructional services and custom software provided to schools, including digital learning tools and IT support.
- Adds a new exemption for sales to schools under existing grant programs (e.g., federal ESSER funds) that were previously subject to sales tax.
Who is affected
- Public and private K–12 schools — School districts, charter schools, and other K–12 public or private educational institutions will be able to purchase certain goods and services—including technology, construction, and arts/cultural programming—without paying state sales tax, reducing their operating costs.
- Before-and-after school care providers — Before-and-after school care programs (e.g., tutoring, clubs, sports) that serve school-aged children will no longer be subject to sales tax on their program fees, making such programs more affordable for families.
- Arts and cultural nonprofits — Nonprofit arts and cultural organizations that provide arts education to K–12 students or the public will be exempt from sales tax on their class and program fees, supporting affordability and access to arts education.
- Families and students — Families and students benefit from lower costs for school-related services, supplies, and enrichment programs due to the sales tax exemptions.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
K–12 schools (public, private, charter) will save on sales tax for instructional goods and services—including technology, software, construction, and arts programming—freeing up funds for direct student use such as textbooks, supplies, or staffing, which benefits students and underfunded districts most.
EducationPeopleRef: Sec. 1, RCW 82.04.050(17)(a) & (b)Before-and-after school programs (e.g., tutoring, athletics, clubs) offered by schools or approved providers will no longer be subject to sales tax, lowering program fees and increasing accessibility for low- and middle-income families.
EducationPeopleRef: Sec. 1, RCW 82.04.050(3)(l)(ii)(A) & (B)Arts and cultural nonprofits providing K–12 education (e.g., music, theater, visual arts classes) will be exempt from sales tax on class fees, supporting affordability and access to enrichment—especially important for students in under-resourced schools or communities.
EducationPeopleRef: Sec. 1, RCW 82.04.050(3)(l)(ii)(B)The exemption for purchases made under federal grant programs (e.g., ESSER) ensures that pandemic-recovery funds go further, directly supporting student learning without being eroded by sales tax—benefiting districts using federal funds for high-need students.
EducationPeopleRef: Sec. 1, RCW 82.04.050(16)Exemption for custom software and IT support services to schools may reduce costs for ed-tech vendors serving public schools, potentially encouraging innovation and lower-cost digital tools—but benefit is modest and concentrated among vendors, not end users.
Business & EmploymentLean peopleRef: Sec. 1, RCW 82.04.050(17)(b)
Potential Concerns (3)
The state will lose $25–30 million annually in sales tax revenue, which could reduce funding for core public services like education, transportation, or healthcare—especially impactful in a period of rising costs and inflation.
FinancialRef: Sec. 1, RCW 82.04.050(16)School districts may face administrative complexity in verifying eligibility for exemptions (e.g., distinguishing between approved before-and-after school providers vs. unapproved ones), potentially diverting staff time and resources from direct student support.
Local GovernmentRef: Sec. 1, RCW 82.04.050(16)The bill excludes for-profit providers of before-and-after school care from the exemption unless they are “approved providers,” which may create a competitive disadvantage for small for-profit programs that lack formal approval but serve low-income families—potentially reducing service diversity and access in underserved areas.
Business & EmploymentRef: Sec. 1, RCW 82.04.050(3)(l)(ii)(B)
Who Is Most Affected
Public K–12 schools—especially those in low-income districts—will benefit significantly from reduced operating costs, allowing more funds for teachers, supplies, and student services.
Families in low- and middle-income households benefit from lower fees for before-and-after school and arts programs, improving access to enrichment—though the magnitude depends on whether providers pass savings through in reduced tuition.
Arts and cultural nonprofits serving students gain financial relief, supporting program continuity and affordability—but only if they qualify as 501(c)(3) and primarily serve K–12 students or the public, excluding some for-profit or narrowly focused providers.
For-profit before-and-after school providers may be negatively impacted if they are not approved by districts or fail to meet the narrow definition of 'approved provider,' potentially reducing competition and service options in some communities.
The state government and general fund will experience a net revenue loss of $25–30M/year, which could strain budget flexibility—though the bill frames this as an investment in student outcomes, the fiscal cost is real and could affect other services if not offset.