Tobacco Settlement Authority

From the 2024 DOR Tax Exemption Study

82.04.311 - Tobacco Settlement Authority Description Income received by the Tobacco Settlement Authority (authority) is exempt from B&O tax. The authority has certain financing powers under the law, including the issuance of bonds to pay for purchasing a portion of the amounts due to the state under the Master Settlement Agreement. The interest and gain on those bonds would otherwise be subject to B&O tax but for this exemption. Purpose Recognizing that the authority is a public instrumentality of the state and is not engaged in conducting an enterprise activity. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenue, but the state would be taxing a exemption public instrumentality. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This exemption impacts fewer than three taxpayers; any impacts are confidential. Data Sources Tobacco Settlement Authority Additional Additional Information Information Category: Government Year Ena