Meat processors

From the 2024 DOR Tax Exemption Study

82.04.260(4) - Meat processors Description Persons in the business of wholesaling, slaughtering, breaking, and/or processing perishable meat products receive a preferential B&O tax rate of 0.138%. The tax rate for general manufacturing is 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 $29.430 $31.280 $33.250 $35.330 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential B&O tax rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $28.680 $33.250 $35.330 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 reflects the compound annual growth rate of 6.3% based on slaughtering, breaking, and processing perishable meat historical taxable amounts. Data Sources - Department of Revenue, Excise tax data Additional Additional Information Information Category: Agriculture Year Enacted: 1967 Primary Beneficiaries: Meat processors Taxp