// Deduction

Nonprofit kidney dialysis, nursing homes, and hospice

B&O Tax deduction · RCW 82.04.4289 · enacted 1945

All exemptions & deductions

Details

Citation
RCW 82.04.4289
Study reference
E1127-1
Tax type
B&O Tax
Preference type
Deduction
Category
Nonprofit
Year enacted
1945
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Revenue if repealed — local ($M)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Revenue if repealed — state ($M)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: 4.207 · FY 2026: 5.493 · FY 2027: 5.749
Taxpayer savings — local ($M)
FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
Taxpayer savings — state ($M)
FY 2024: 5.066 · FY 2025: 5.262 · FY 2026: 5.493 · FY 2027: 5.749

CTI = confidential taxpayer information · D = unable to disclose

From the 2024 DOR Tax Exemption Study

82.04.4289 - Nonprofit kidney dialysis, nursing homes, and hospice Description Compensation received for patient care or from the sale of prescription drugs furnished as an integral part of services to patients are exempt from B&O tax for: - Nonprofit nursing homes. - Nonprofit kidney dialysis facilities. - Nonprofit hospice agencies. - Homes for unwed mothers operated by religious or charitable organizations. Purpose Reduces the cost of caring for patients. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.066 $5.262 $5.493 $5.749 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 $4.207 $5.493 $5.749 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 - Economic and Revenue Forecast Council, March 20

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