Arts organizations - income from business activities

From the 2024 DOR Tax Exemption Study

82.04.4327 - Artistic and cultural organizations Description Nonprofit artistic or cultural organizations may claim a B&O tax deduction for all income from business activities, including government grants and the value of the items manufactured. These organizations provide the public with art, cultural, and/or historical exhibitions, musical or dramatic performances, or educational seminars or programs. Purpose To support the programs of artistic and cultural organizations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.990 $3.100 $3.240 $3.400 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 $2.850 $3.240 $3.400 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 taxability activity growth rate reflected in the Economic and Revenue Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council