Accommodation sales of automobiles

From the 2024 DOR Tax Exemption Study

82.04.422(2) - Accommodation sales of automobiles Description New car dealers are exempt from the wholesaling B&O tax for wholesale sales of new vehicles to other new car dealers of the same make of vehicle. Purpose Recognizes these sales are for the convenience of dealers to enable them to meet customer demand and do not represent profit for the seller. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.156 $0.162 $0.167 $0.173 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 $0.149 $0.167 $0.173 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 wholesaling B&O growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - This estimate may be overstating revenues as the repeal of the exemption for dealer trades may result in additional taxpayers using the exemption for accommodation sales (many of these transactions may qualify as