Fruit and vegetable manufacturing

From the 2024 DOR Tax Exemption Study

82.04.260(1)(d) - Fruit and vegetable manufacturing Description Beginning July 1, 2035, manufacturers of fruit or vegetable products by canning, preserving, freezing, processing, or dehydrating receive a preferential B&O tax rate of 0.138% for the following activities: - The manufacture of fruit and vegetables. - The sale of manufactured fruit and vegetables at wholesale to purchasers who transport it out-of-state in the ordinary course of business. The general manufacturing B&O tax rate is 0.484%, however, fruit and vegetable 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 fruit and vegetable 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 t