Church child care

From the 2024 DOR Tax Exemption Study

82.04.339 - Church childcare Description Churches providing childcare for periods of less than 24 hours are exempt from B&O tax. The church must be exempt from property tax to qualify. Purpose Reduces the cost of operating such facilities. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.300 $0.320 $0.340 $0.370 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 $0.040 $0.090 $0.140 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 B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - This group of taxpayers are not registered; reporting compliance is expected to be: - 13% revenue collections in fiscal year 2025. - 26% revenue collections in fiscal year 2026. - 39% revenue collections in fiscal year 2027. Data Sources - Economic and Revenue Forecast Council, March 2023 forecast - Washington Department o