Funeral home reimbursement

From the 2024 DOR Tax Exemption Study

82.04.4296 - Funeral home reimbursement Description Licensed funeral home businesses may deduct income subject to B&O tax received as reimbursement for funeral expenses if the goods and services are: - Provided by a person not employed, affiliated, or associated with the funeral home. - Itemized separately in the billing statement. - Billed at cost. Purpose To reduce the cost of funerals. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.048 $0.050 $0.053 $0.055 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 $0.046 $0.053 $0.055 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 2023 forecast Additional Additional Information Information Category: Bus