Farm products shipped to ports

From the 2024 DOR Tax Exemption Study

82.16.050(10) - Farm products shipped to ports Description Transportation businesses may deduct income subject to PU tax for shipping agricultural products from a location in Washington to an interim storage facility if: - The agricultural products stay in their original form. - More than 96% of the facility's agricultural products were exported outside Washington by vessel the previous year. Purpose To avoid taxing the shipment of agricultural products for export. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.252 $0.259 $0.266 $0.273 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.237 $0.266 $0.273 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 mirrors the public utility taxable growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Percentage of total freight shipments that are agricultural commodities is 4%. - Percentage