Multiple activities tax credit - interstate

From the 2024 DOR Tax Exemption Study

82.04.440(4) - Multiple activities tax credit - interstate Description Businesses may take a B&O tax credit when paying taxes more than once on the same product because they engage in multiple taxable activities within and outside of Washington. This credit is only available to businesses subject to a gross receipts tax similar to Washington's B&O tax. The credit can be up to the taxes paid to the other state. Purpose Ensures B&O tax applies to in-state and out-of-state activities equally and businesses do not pay taxes on a product more than once. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.200 $2.200 $2.200 $2.200 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues, provided the in-state multiple exemption activities credit were also repealed. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.100 $2.200 $2.200 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 is minimal; therefore, amount remains the same for future periods. Data S