Local government business income

From the 2024 DOR Tax Exemption Study

82.04.419 - Local government business income Description Counties, cities, towns, school districts and fire districts are exempt from B&O tax. Public utilities and enterprise activities are not exempt from B&O tax. Enterprise activities include activities financed and operated similar to a private business. Purpose Excludes government activities, except utility and enterprise activities, from tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $207.600 $251.600 $262.700 $275.300 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 $86.000 $114.400 $119.800 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 service and activities B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Repeal impact does not include county, city, town, school district, and fire district income exempt under other statutes. Data