Radioactive waste cleanup

From the 2024 DOR Tax Exemption Study

82.04.263 - Radioactive waste cleanup Description Businesses providing clean-up services of radioactive waste or other by-products of weapons production and nuclear research and development for the U.S. government or its instrumentalities receive a preferential B&O tax rate of 0.471%. Without the preferential rate, the income would be subject to the service and other activities B&O tax rate of 1.5% or 1.75%. Purpose Encourages the clean-up of radioactive waste at the Hanford site, which is crucial to the environment. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $42.280 $43.900 $45.860 $48.050 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 $40.250 $45.860 $48.050 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 service and other activities B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast.