Security Services NW Files Lawsuit Against Washington State Over Sales Tax Law
SEQUIM, WA — Security Services Northwest, Inc. (SSNW), one of Washington’s largest private security firms, has filed a lawsuit in Thurston County Superior Court challenging the state’s new sales tax law on services. The complaint, filed September 30, 2025, seeks to block the October 1 implementation of Engrossed Substitute Senate Bill 5814 (ESSB 5814), which adds retail sales tax to seven new categories of services — including investigation, security, monitoring, and armored car services.
The lawsuit, brought by Holland & Knight LLP on behalf of SSNW, argues that the effective date of October 1 violates the Due Process Clause of the U.S. Constitution and Article I, Section 3 of the Washington Constitution, because businesses were not given adequate notice or time to prepare for sweeping changes. According to the complaint, the Department of Revenue only issued interim guidance on September 12 — just 19 days before the law was set to take effect.
“This unfairly prejudices security companies,” the filing states, adding that SSNW cannot reasonably adapt its systems to charge sales tax in all 39 counties in Washington with so little lead time.
SSNW, headquartered in Sequim and employing over 600 people across the Northwest, provides security guard services, patrols, alarm and video monitoring, for private clients, schools, housing authorities, and government agencies. The company says the new tax will burden its customers, including public entities that will, in effect, be taxed twice by paying sales tax with taxpayer funds.
The lawsuit asks the court to:
-Declare ESSB 5814’s October 1 effective date unconstitutional.
- Extend implementation to January 1, 2026; and
- Enjoin enforcement of the law until then
“Not even California taxes private security services,” said Joe D’Amico, President of SSNW. “Washington is making itself an outlier and forcing schools, housing authorities, and small businesses to pay more for less safety. This is a health and safety issue, not just a business issue.”
The case raises broader questions about the fairness and constitutionality of Washington’s aggressive tax expansion, which also targets advertising, IT services, temporary staffing, and custom software. A ruling in SSNW’s favor could delay enforcement statewide and spark further challenges from other affected industries.