Interstate transportation - shipments to ports

From the 2024 DOR Tax Exemption Study

82.16.050(9) - Interstate transportation - shipments to ports Description Businesses may deduct income subject to the PU tax when transporting products to an export point to be delivered outside of Washington, except when the trip either begins or ends in the same city or town. Purpose To avoid taxing products that are exported out of Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.220 $5.380 $5.560 $5.760 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 $4.930 $5.560 $5.760 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 tax 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 - USDOT Bureau of Transportation Statistics, Average freight revenue - National Transportation Research