Interstate transportation - in-state portion

From the 2024 DOR Tax Exemption Study

82.16.050(6) - Interstate transportation - in-state portion Description Businesses may deduct income subject to the PU tax when a trip either begins or ends outside of Washington. Purpose To avoid taxing transportation businesses when a trip either begins or ends outside of Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $44.830 $45.500 $46.670 $47.910 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 $41.700 $46.670 $47.910 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. - Most freight commodity product terminals are located near interstate boundaries, in-state portion of interstate trips will be minimal. - Vessels, barges, and watercraft will predominantly travel in non-Washington waters. - Estimated in-state portion of inters