On Friday, Washington Department of Revenue posted Draft Rule 15503 – Taxation of Digital Products on its website in preparation for stakeholder meetings on July 14th and 15th. The rule takes effect on July 26th, which doesn’t leave much time for changes or clarifications prior to the rule taking effect.
Downloaded digital goods are already subject to sales tax in Washington State. Effective July 26, 2009, sales tax applies to all digital goods, regardless of how they are accessed (downloaded, streamed, subscription service, networking, etc). This includes remote access software (e.g. application service providers) and digital automated services (e.g. photo sharing services). You can find the draft rule here and additional information on the Washington Department of Revenue website here.