Regional Transit Authority Sales and Leasebacks

From the 2024 DOR Tax Exemption Study

82.04.4201 - Regional Transit Authority Sales and Leasebacks Description Lease payments received under a sale and leaseback arrangement involving a regional transportation authority (RTA) are exempt from B&O tax. Purpose The RTA uses this financing mechanism to acquire trains, buses, and transportation facilities. This exemption provides tax relief to the RTA. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI 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 CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This exemption impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Government Year Enacted: 2000 Primary Beneficiaries: Regional transit authority Taxpayer Count: Fewer than three Program Inconsistency: None evident JLARC Review: Expedited review completed in 2015 and 2020 2024 Tax Exemption Study Page 125