Business Owners Say New Taxes Motivating Them to Leave WA

It's no secret the movement out of WA state from many businesses, especially on the West side.

Now more are voicing about it.

  New Digital, and Income Taxes Are Spurring More Movement

It's not going to looked like a "wagon train,' or long line of moving vans, rather, say experts, it will be like 'death' by thousands of business departures over time.

The Center Square profiled one such business, a photography outfit called Movement, that according to business lists has 8 workers, 6 in Seattle. The owner, Marc Barros, said he is leaving WA, but did not specify where he was going. Besides Seattle's excessive sales tax, B&O tax, property taxes, etc. new digital fees have increased his costs dramaticallly.

 New Digital Taxes From 2025 on Top of New Income (millionaires') Tax Hit Hard

Last year, when the legislature repealed the sales tax exemption for nearly all digitally-related businesses, Barros said his costs skyrocketed.  It doesn't matter where you are located or team is, if you're incorporated in WA, you have to pay the tax.  He said he's even being taxed on photos and creations that are displayed in Germany.

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Seattle attorney Joe Wallin told The Center Square the new millionaires (income) tax will definitely drive business out of state. However, he said many will do a cost-benefit analysis, some of them won't be able to leave due to investments they've made here---such as infrastructure, buildings etc.

He also warned about the "invisibile" effect of these new taxes.  Those are not a subtraction, but rather businesses that years ago might have relocated here, but now will not.

 READ More: Seattle sets new record for business vacancy rate

  New Data Shows WA 2nd  Worst in New Business Survival

Data published by DesignRush.com shows 86.4 percent of new businesses in WA survive year one, but in year two that plummets to 47.4 percent and by year 5, the number drops even further to  41.1 percent which is worst in the US.