Leases less than 30 days

From the 2024 DOR Tax Exemption Study

82.29A.130(9) - Leases less than 30 days Description Leases of public property are exempt from leasehold tax if the lease period does not exceed 30 consecutive days in duration. Purpose The 30-day threshold can apply to both small and large lessees. It encourages short- term events, such as sporting events and trade shows, to take place in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.096 $2.116 $2.152 $2.190 Local Taxes $1.838 $1.856 $1.888 $1.921 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.587 $2.152 $2.190 Local Taxes $0.000 $1.392 $1.888 $1.921 Assumptions - This repeal takes effect July 1, 2024, and impacts nine months of collections in fiscal year 2025. - Growth rate mirrors the leasehold excise tax growth rate in the Economic and Review Forecast Council's March 2023 forecast. - Data used only includes revenue from state parks and fairs. Revenue from other sources using this exemption is unavailable, therefore this estimate may be understating revenues. Data Sources - Department of Revenue, Lea