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One of Washington’s largest private security firms has launched a legal assault on the state’s sweeping tax expansion, filing suit to block a new law that would impose sales tax on security and other “service” industries.
Security Services Northwest, Inc. (SSNW) filed a complaint September 30 in Thurston County Superior Court challenging Engrossed Substitute Senate Bill 5814 (ESSB 5814), which went into effect on October 1, 2025. It imposes sales tax on seven new categories of services—including security, investigation, monitoring, and armored car services
Here’s what the lawsuit alleges
The lawsuit argues the sudden change violates businesses’ due process rights under the U.S. Constitution and Article I, Section 3 of the Washington Constitution, because companies were given almost no time to prepare. According to the filing, the Washington Department of Revenue issued interim guidance only on September 12—just 19 days before the law’s effective date.
“This unfairly prejudices security companies,” the complaint states, noting that SSNW cannot reasonably adapt its billing systems across all 39 Washington counties with so little notice.
The lawsuit asks the court to extend implementation until the new year.
Sequim-based SSNW, which employs over 600 people, argues the tax also hurts public-sector clients such as schools and housing authorities—forcing taxpayer-funded agencies to pay more for essential security operations.
“Not even California taxes private security services. 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,” Joe D’Amico, President of SSNW, explained in a release.
