Government and public uses

From the 2024 DOR Tax Exemption Study

82.38.080(1)(a-c) - Government and public uses Description The following sales of special fuel are exempt from the fuel tax: - Sales to the state of Washington, any county, or any municipality when the fuel is used for street and highway construction and maintenance purposes in motor vehicles owned and operated by the jurisdiction. - Sales for use in publicly owned firefighting equipment. - Sales to the U.S. government. Purpose Lowers the costs of government and public services. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.520 $1.540 $1.570 $1.590 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 $1.410 $1.570 $1.590 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 special fuel tax collections growth rate reflected in the Transportation Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Licensing, Fuel tax data - Transportation R