SEQUIM — A Sequim business is at the center of the latest legal fight over Washington’s new tax on services — a tax that took effect just last week and could bring billions into state and local coffers.
Security Services Northwest, based in Sequim, has filed a lawsuit in Thurston County Superior Court asking a judge to delay the new tax on security services until January. The company argues the Department of Revenue moved too fast and didn’t give businesses enough time to prepare.
President Joe D’Amico says the policy unfairly targets public safety providers, calling it “a direct tax on public safety” that makes protection more expensive for communities trying to stay safe.
The new law — Senate Bill 5814, signed by Governor Bob Ferguson in May — expands sales taxes to a wide range of professional services, including security, information technology, live events, and staffing. The state estimates it could generate more than $2.6 billion over four years, with $127 million of that coming from the security industry alone.
Security Services Northwest provides security officers, alarm installation, and remote monitoring throughout the region. The company says state guidance on the new tax was issued less than three weeks before it took effect, leaving little time to update billing systems or notify customers.
A spokesperson for the Department of Revenue declined to comment on the case but said the agency is reviewing the complaint.
The Sequim company’s lawsuit is the second challenge to the new tax law — Comcast is already suing over a separate provision targeting digital advertising services.