Assisted living facilities

From the 2024 DOR Tax Exemption Study

82.04.2908 - Assisted living facilities Description Income from businesses operating licensed assisted living facilities providing room and daily living or health support, or occasional nursing services receive a preferential B&O tax rate of 0.275%. 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 Makes the taxation of assisted living facilities similar to the treatment of nursing homes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $16.020 $16.640 $17.380 $18.210 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential rate would increase revenue. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $15.250 $17.380 $18.210 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 growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic an