Radio and TV broadcasting

From the 2024 DOR Tax Exemption Study

82.04.280(1)(f) - Radio and TV broadcasting Description Radio and television broadcasters may deduct gross receipts from national, network, and regional advertising from the measure of B&O tax. Broadcasters calculate the national, network, and regional advertising deduction using either: - A standard deduction rate published by the department. - By itemization using actual receipts. Radio and television broadcasters receive a preferential B&O tax rate of 0.484% on the gross receipts from advertising rather than the service and other activities B&O tax rate of 1.5% or 1.75%. Purpose Broadcasts which cross the state's boundaries and advertising income derived from outside the state may constitute interstate commerce. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.380 $1.480 $1.570 $1.680 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenue unless the tax interferes with exemption interstate commerce. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.360 $1.570 $1.680 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect