Prescription drug resellers

From the 2024 DOR Tax Exemption Study

82.04.272 - Prescription drug resellers Description Income from licensed businesses warehousing and reselling prescription drugs for human use receive a preferential B&O tax rate of 0.138%, rather than the wholesaling tax rate of 0.484%. Purpose To encourage prescription drug warehousing and reselling business activity in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $33.090 $34.310 $35.460 $36.620 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 $31.460 $35.460 $36.620 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 wholesale 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: Business Year Enacted: 1998 Primar