Business inventories

From the 2024 DOR Tax Exemption Study

84.36.477 - Business inventories Description Business inventories, including most products held, acquired, or produced solely for: sale or lease, or for consumption of property that becomes an ingredient or component of property produced for sale or lease, are exempt from property tax. Purpose To stimulate the economy and help to make Washington competitive with neighboring states that eliminated personal property taxes on business inventories. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $119.639 $118.508 $114.227 $112.175 Local Taxes $353.935 $361.268 $359.151 $363.677 Repeal of Repealing a property tax exemption would not increase state revenues. The repeal exemption shifts the state property tax to those taxpayers currently receiving this exemption and reduces the tax burden of other taxpayers. The repeal may decrease the local rate, and local taxing districts at their statutory maximum may experience a revenue increase. Potential ($ 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 $10.237 $19.530 $19.652 Assumptions - Total estimated exempt value is $54.8 bil