Services performed between local governments

From the 2024 DOR Tax Exemption Study

82.04.4291 - Services performed between local governments Description Local government jurisdictions may deduct amounts received from other political subdivisions as compensation for services subject to B&O tax. Purpose Allows local governments to perform services for other jurisdictions (computer operations, accounting, etc.) without incurring B&O tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 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 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions Impact from this deduction is included under the exemption for local government business income. Data Sources None Additional Additional Information Information Category: Government Year Enacted: 1967 Primary Beneficiaries: Local Governments Taxpayer Count: Unknown Program Inconsistency: None evident JLARC Review: Expedited review completed in 2010 with an upcoming review in 2025 2024 Tax Exemption Study Page 165