The Washington Department of Revenue issued an Interim Guidance Statement on the taxability of non-fungible tokens (NFTs). The guidance provides that the purchase of a standalone NFT is generally subject to sales tax as the sale of a digital product, and the seller of the NFT is also subject to the business and occupation (B&O) tax on the gross proceeds of the sale. Receipts from sales of NFTs are sourced according to the existing digital products sourcing hierarchy. Additionally, where a purchaser receives a NFT and another good and/or service, and the NFT is not the object of the customer’s purchase, Washington’s “bundled transaction” guidance controls whether the entire sales price is subject to tax or whether each item is taxed separately. Finally, the guidance will remain in effect until the Department develops and issues permanent and more comprehensive guidance regarding the taxability of NFTs.