Nonprofit sheltered workshops

From the 2024 DOR Tax Exemption Study

82.04.385 - Nonprofit sheltered workshops Description Nonprofit organizations operating sheltered workshops and group training homes for persons with developmental disabilities are exempt from the B&O tax on income received from the state and from business activities from the operation of sheltered workshops. Purpose Reduces the cost of providing services to persons with developmental disabilities. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.180 $1.220 $1.270 $1.330 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 $1.120 $1.270 $1.330 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. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Cat