Child welfare services

From the 2024 DOR Tax Exemption Study

82.04.4275 - Child welfare services Description Health or social welfare organizations may deduct compensation they receive for providing child welfare services under a government-funded program for purposes of the B&O tax. A person may deduct amounts they receive from Washington which are distributed to a health or social welfare organization as compensation for providing child welfare services under a government-funded program. Purpose Reduces the costs for health or social welfare organizations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.055 $0.054 $0.062 $0.067 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.049 $0.062 $0.067 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 B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Econom