Financial institution investment conduit or securitization entity income

From the 2024 DOR Tax Exemption Study

82.04.650 - Financial institution investment conduit or securitization entity income Description Cash and securities received by an investment conduit of a financial institution or a securitization entity of a bank holding company are exempt from B&O tax. Purpose To avoid taxing the same revenue more than once and to clarify that the activities of financial institution investment conduits and bank securitization entities are not taxable. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $20.600 $21.300 $22.000 $22.700 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $19.500 $22.000 $22.700 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 10-year treasury yield growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Assets are held for one-third of the year. Data Sources - Economic and Revenue Forecast Council, March 2023 forec