Details
- Citation
- RCW 82.04.4283
- Study reference
- E1122-1
- Tax type
- B&O Tax
- Preference type
- Deduction
- Category
- Tax Base
- Year enacted
- 1935
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: 106 · FY 2025: 110.2 · FY 2026: 114.8 · FY 2027: 119.8
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.4283 - Cash discounts Description Cash discounts are deductible from the seller's measure of B&O tax when taken by the purchaser. Purpose To avoid taxing sellers on income they did not receive. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $106.000 $110.200 $114.800 $119.800 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would not increase revenues. Businesses deduct cash exemption discounts as an accounting convenience and would likely alter their method of reporting tax if the deduction were repealed. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - A repeal of this exemption results in no revenue impact. Data Sources - Department of Revenue, Excise tax data - Joint Legislative Audit and Review Committee, Report 09-11: 2009 Full tax preference performance reviews Additional Additional Information Information Category: Tax base Year Enacted: 1935 Primary Beneficiaries: Businesses offering cash discounts to purchasers Taxpayer Count: 6,132 Program Inconsistency: None evident JLARC Rev
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This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: