Urban transportation

From the 2024 DOR Tax Exemption Study

82.16.020(1)(d) - Urban transportation Description Urban transportation businesses are subject to the public utility tax at a rate of 0.642%. The public utility tax rate for most other forms of transportation is 1.926%. Urban transportation businesses operate vehicles for public use to convey persons or property for hire either entirely: - Within a city or within five miles of the city. - Within and between cities that are not more than five miles apart. - Within five miles of the corporate limits of either. Purpose Reduces costs for local transit authorities and qualifying businesses. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.040 $6.460 $6.920 $7.420 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 $5.930 $6.920 $7.420 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. - Growth rate reflects the compound annual growth rate of 7.1% based on historical urban transportation taxabl