Regional Transit Authority Sales and Leasebacks

From the 2024 DOR Tax Exemption Study

82.29A.134 - Regional Transit Authority Sales and Leasebacks Description All leasehold interests in property owned by a Regional Transit Authority (RTA) are exempt from leasehold excise tax if they are in connection with a sale and leaseback arrangement. Purpose A sale and leaseback arrangement is a financing mechanism used to facilitate the acquisition of personal property by an RTA. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions The Regional Transit Authority is not using the sale and leaseback arrangement due to changes in Internal Revenue Service policy. Data Sources Regional Transit Authority Additional Additional Information Information Category: Other Year Enacted: 2000 Primary Beneficiaries: Sound Transit and investors Taxpayer Count: 0 Program Inconsistency: None evident JLARC Review: Expedited review completed in 2020 2024