Hops processed and exported

From the 2024 DOR Tax Exemption Study

82.04.337 - Hops processed and exported Description Sales of hops processed into extract, pellets, or powder in Washington and then shipped outside the state for first use are exempt from B&O tax. Income received for processing or warehousing hops is not exempt from the tax. Purpose Recognizes processing of hops into extract, pellets or powder is merely to facilitate shipment of the product and eliminates it from manufacturing B&O tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.190 $2.190 $2.190 $2.190 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 $2.010 $2.190 $2.190 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. - The three-year average for hops produced in Washington is 76.86 million pounds. Hop production is fairly constant per year, there is no annual growth. - The three-year average farm-gate value of Washington hops is $5.92 per pound. - The processed value of expor