Cash discounts

From the 2024 DOR Tax Exemption Study

82.16.050(4) - Cash discounts Description A business may deduct cash discounts taken by customers from gross income subject to public utility tax when the business’s gross income reported includes these cash discounts. Purpose The deduction recognizes the true value of services performed by the business. 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 $0.000 Repeal of Repealing this deduction would not increase revenues. exemption Potential ($ 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 $0.000 $0.000 Assumptions Although taxpayers using accrual-based accounting report this deduction and therefore, experience savings, the state would not achieve revenue gains if legislation repealed the deduction. This is because taxpayers using cash basis accounting do not use the deduction; they report the actual amount received at the time of sale. Therefore, taxpayers using accrual-based accounting would switch to cash basis accounting if legislation repealed the deduction. Data Sources Department of Revenue,