Liquefied gasses excluded

From the 2024 DOR Tax Exemption Study

82.23A.010(1) - Liquefied gasses excluded Description The definition of taxable petroleum products excludes liquefied or liquefiable gasses such as propane and butane. This definition expires on July 1, 2030. Purpose This exclusion assumes fuel in a gaseous state imposes much less environmental risk. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.203 $0.290 $0.303 $0.081 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 $0.266 $0.303 $0.081 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. - Washington's liquefied petroleum gas consumption is estimated to grow by 3% annually. - The average price of liquefied petroleum gas is equivalent to the average estimated propane price. - The petroleum products tax will be suspended in July 2025. It is expected to be reactivated in April 2026, and remain on through fiscal year 2027 before being suspended at the beginning of fiscal year 2028 for