Dairy products manufacturing

From the 2024 DOR Tax Exemption Study

82.04.260(1)(c) - Dairy products manufacturing Description Beginning July 1, 2035, manufacturers of dairy products receive a preferential B&O tax rate of 0.138% on sales from the following activities: - The manufacture of dairy products. - The sale of manufactured dairy products to purchasers who transport it out-of- state in the ordinary course of business. The general manufacturing tax rate is 0.484% however, dairy product manufacturing described above is exempt from B&O tax until July 1, 2035. Purpose To provide tax relief to food processors and to create and retain jobs within the dairy industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential rate would increase revenues beginning July 1, 2035. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions No revenues realized since affected taxpayers are exempt from B&O tax until July 1, 2035 (RCW 82.04.4268). Data Sources Department of Revenue, Excise tax data Addi