Dried pea processors

From the 2024 DOR Tax Exemption Study

82.04.260(2) - Dried pea processors Description Businesses that split or process dried peas receive a preferential B&O tax rate of 0.138%, rather than the general tax rate for manufacturing of 0.484%. Purpose To provide tax relief to businesses because of a highly competitive market structure. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.138 $0.143 $0.149 $0.156 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preference would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.131 $0.149 $0.156 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the manufacturing B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council’s March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Agriculture Year Enacted: 1967 Primary Beneficiaries: Dried pea processors Taxpayer C