Chemical dependency treatment

From the 2024 DOR Tax Exemption Study

82.04.2906 - Chemical dependency treatment Description Income from Department of Social and Health Services (DSHS) certified businesses providing intensive inpatient or recovery house residential recovery treatment services for chemical dependency and receiving payment from government sources is subject to the preferential B&O tax rate of 0.484%. Income from payment by non-government sources is subject to the service and other activities B&O tax rate of 1.5% or 1.75% if taxable income was $1 million or more in the prior calendar year. Purpose To support chemical dependency center businesses providing social and health services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.860 $0.920 $0.970 $1.040 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 $0.840 $0.970 $1.040 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 hospital B&O taxable activity gro