2nd Narrows bridge

From the 2024 DOR Tax Exemption Study

82.16.046 - Second Narrows Bridge Description A public utility tax exemption is allowed on income derived from operation of state route 16 corridor transportation systems and facilities constructed and operated. This statute addresses the second bridge over Puget Sound at the Tacoma Narrows and exempts any tolls received by the operator of the bridge from public utility tax. Purpose Lower the overall cost of operating the second Narrows bridge. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues. The state receives the tolls, exemption not the business contracted to collect the tolls. Income derived from the operation of state route 16 does not fall under the public utility tax classifications. Normally, the contractor is subject to B&O tax under the service classification on amounts paid by the state to perform this service. Thus, there is no impact on public utility tax. Potential ($ 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 $0.000 $