Municipal sewer service payments

From the 2024 DOR Tax Exemption Study

82.04.432 - Municipal sewer service payments Description City sewer utilities may deduct payments to other cities or other governmental agencies for interception, treatment, or disposal of sewerage from income subject to B&O tax. Revenues from sewerage collection is taxable under the state public utility tax at a rate of 3.852%. Purpose This deduction eliminates pyramiding of B&O and public utility tax when multiple utilities provide sewage services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.640 $2.720 $2.810 $2.910 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues as long as legislation also repeals exemption the deduction for amounts derived by a political subdivision of the state from another political subdivision. Otherwise, there would be no increase in revenues. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.490 $2.810 $2.910 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 sewer public utility tax g