Fruit and vegetable manufacturing or processing

From the 2024 DOR Tax Exemption Study

82.04.4266 - Fruit and vegetable manufacturing or processing Description Manufacturers of fruits or vegetable by canning, preserving, freezing, processing, or dehydrating are exempt from B&O tax for the following activities: - The manufacture of fruits and vegetables. - The sale of manufactured fruit and vegetables at wholesale to purchasers who transport it out-of-state in the ordinary course of business. This exemption expires July 1, 2035. Purpose To provide tax relief to fruit and vegetable processors and to create and retain jobs within the fruit and vegetable industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $20.850 $21.310 $21.780 $22.260 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 $19.530 $21.780 $22.260 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 reflects the compound annual growth rate of 2.2% based on incentive savings reported in the annual t