Assets used in a trade or business to the extent those assets are depreciable

From the 2024 DOR Tax Exemption Study

82.87.050(6) - Assets used in a trade or business to the extent those assets are depreciable Description The capital gains tax does not apply to the sale or exchange of depreciable assets used in a trade or business. Purpose To provide a tax preference for businesses. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.390 $1.470 $1.510 $1.600 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 $0.000 $1.430 $1.520 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect January 1, 2025, and impacts 12 months of collections in fiscal year 2026. - Growth rate mirrors the long-term capital gains growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Individuals with estimated payments: - Will receive refunds in fall 2023, amounting to 12% of the estimated payments. - Will use deductions at the same frequency as return filers with similar amounts of tax due. - Repealing this exemption will not impact the capital gains tax credit amoun