Constitutional exemptions

From the 2024 DOR Tax Exemption Study

82.16.050(6) - Constitutional exemptions Description A business may deduct amounts prohibited from taxation under the Washington State Constitution, the U.S. Constitution, or federal law from gross income subject to public utility tax. Purpose To avoid violating state and federal laws. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $91.490 $82.150 $96.710 $99.440 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would not increase revenues as the U.S. and Washington exemption Constitutions prohibit the taxation of certain activities. Potential ($ 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 Repealing this deduction would not increase revenues as the U.S. and Washington Constitutions prohibit the taxation of certain activities Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Interstate Commerce Year Enacted: 1935 Primary Beneficiaries: Interstate transportation businesses Taxpayer Count: 4,674 Program Inconsistency: None evident JLARC Review: Full