Domestic uses of petroleum

From the 2024 DOR Tax Exemption Study

82.23A.030(2) - Domestic uses of petroleum Description Petroleum used by persons (not businesses) for personal or domestic purposes is exempt from petroleum products tax. This exemption expires on July 1, 2030. Purpose Ensure the tax applies only to businesses that import or produce petroleum in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.100 $0.100 $0.020 $0.090 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 $0.090 $0.020 $0.090 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. - This represents the minimum amount of petroleum products exempt from petroleum products tax due to domestic use. - The growth rate for the domestic use of petroleum products decreases by 2% annually into the future. - 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 th