Dairy products manufacturing or wholesaling

From the 2024 DOR Tax Exemption Study

82.04.4268 - Dairy products manufacturing or wholesaling Description Manufacturers of dairy products are exempt from B&O tax for the following activities: - The manufacture of dairy products. - The sale of manufactured dairy products to purchasers who transport it out-of- state in the ordinary course of business. - The sale of dairy products to purchasers who use the products as an ingredient or component in the manufacture of a dairy product. Purpose To provide tax relief to dairy processors and to create and retain jobs within the dairy industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.230 $6.460 $6.690 $6.940 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 $5.920 $6.690 $6.940 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 3.6% based on incentive savings reported in the annual tax performance reports. Data Sourc