Security company drops lawsuit over new WA tax

Security Services Northwest has voluntarily dropped its lawsuit against Washington's new sales tax on services, which was initiated in late September. The Thurston County Superior Court judge's dismissal allows for the possibility of refiling in the future. This tax, part of Senate Bill 5814, is projected to bring in $1. 1 billion for the state budget over two years and has faced significant opposition from various sectors. The firm contended it lacked adequate time to adjust its operations for compliance with the tax regulations.

The Department of Revenue had issued guidance to businesses, notifying them of their obligations prior to the law's October 1 implementation. The lawsuit's withdrawal comes amid broader legal challenges to the tax laws, including a separate suit from Comcast regarding digital advertising services. The tax on security services is estimated to generate $127 million over four years. Security Services Northwest has been operational since 1977, providing a range of security-related services.