Sales for resale

From the 2024 DOR Tax Exemption Study

82.16.050(2) - Sales for resale Description Water, gas, or other public service distribution businesses may deduct income subject to PU tax received from reselling its commodity. Purpose To avoid pyramiding of the public utility tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.880 $0.920 $0.970 $1.010 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 $0.850 $0.970 $1.010 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 activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Tax base Year Enacted: 1935 Primary Beneficiaries: Natural gas and water utilities Taxpayer Count: 10 Program Inconsistency: None evident JLARC Review