Electricity sales for resale

From the 2024 DOR Tax Exemption Study

82.04.310(2) - Electricity sales for resale Description Wholesale sales of electrical energy are exempt from B&O tax. Purpose To provide the same B&O tax treatment as the PU tax. The sale of electricity to the consumer is the taxable transaction. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.160 $1.180 $1.200 $1.220 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.080 $1.200 $1.220 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 electric power public utility 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: Tax base Year Enacted: 2000 Primary Beneficiaries: Power marketers selling electricity under contract to other entities Ta