Accommodation sales

From the 2024 DOR Tax Exemption Study

82.04.425 - Accommodation sales Description Wholesale sales between businesses regularly selling the same type of property are exempt from B&O tax where the sale is at a cost to a buyer with an existing order for the product from a customer or occurs within 14 days as a reimbursement in- kind for a previous accommodation sale. Additionally, sales by a wholly owned subsidiary to its parent company are exempt from B&O tax when the parent sells the goods in a transaction that qualifies for the sales tax exemption for sales to U.S. government and pays the B&O tax. Purpose Exempts wholesale sales made between businesses solely for the purpose of adjusting inventories to satisfy customer demand. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.185 $1.103 $1.026 $0.955 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. However, it is likely that exemption businesses will make fewer accommodation sales to other sellers if they must pay B&O tax on such sales. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.011 $1.026 $0.955 Local Taxes $0.000 $0.00