Public employee housing

From the 2024 DOR Tax Exemption Study

82.29A.130(5) - Public employee housing Description All leasehold interests used as the employee's residence, when the terms require public employees of their employment to live in a publicly owned property (e.g. at state parks), are exempt from leasehold excise tax. Purpose This exemption supports the legislative policy to not tax the government. Also, the tax would in essence reduce employee compensation or increase government costs. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.093 $0.094 $0.096 $0.098 Local Taxes $0.082 $0.083 $0.084 $0.086 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.071 $0.096 $0.098 Local Taxes $0.000 $0.062 $0.084 $0.086 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 reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Market rents will grow similarly to market values. Data Sources - Washington State Parks, Leasehold data - Economic and Re