International charter and freight brokers

From the 2024 DOR Tax Exemption Study

82.04.260(6) - International charter and freight brokers Description Income from performing the following international business activities is subject to the preferential B&O tax rate of 0.275%: - Steamship agents. - Customs house broker. - Freight forwarders. - Air cargo agents. - Vessel or cargo charter brokers in foreign commerce. Domestic charter and freight brokering business activities do not qualify for the preferential rate; instead, the income is subject to the service and other activities B&O tax rate of 1.5% or 1.75%. Purpose To encourage international trade through Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $23.600 $24.510 $25.600 $26.820 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $22.460 $25.600 $26.820 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 services and other activities B&O taxable activity growth rate ref