Fuel sold to the military

From the 2024 DOR Tax Exemption Study

82.38.080(2)(a) - Fuel sold to the military Description Sales of fuel to the armed forces of the U.S. or the National Guard are exempt from the special fuel tax if the fuel is: - Used exclusively in ships. - Exported from Washington. Purpose Encourages the purchase of fuel in Washington and saves the armed forces the administrative burden of applying for a fuel tax refund for the amount used in ships. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.114 $0.116 $0.117 $0.118 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 $0.106 $0.117 $0.118 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 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 Revenue Forecast Council, March 2023 forecast Additional Additional Information Informat