Self-service laundry facilities

From the 2024 DOR Tax Exemption Study

82.04.050(2)(a) - Self-service laundry facilities Description The definition of retail sale excludes charges for using of self-service laundry facilities. Businesses providing laundry machines on an individual-use basis do not collect sales tax but are subject to the B&O tax under the service classification. Purpose Equalizes the tax treatment of coin-operated laundry facilities. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.160 $5.273 $5.387 $5.503 Local Taxes $2.500 $2.555 $2.610 $2.667 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.360 $2.631 $2.687 Local Taxes $0.000 $1.230 $1.371 $1.401 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate reflects the average growth rate for self-service laundry facilities service and other activities B&O tax. - Compliance of collecting sales tax at coin-operated laundry facilities in places such as apartment complexes is 13% each fiscal year after repeal. Data Sources - Department of Revenue, Excise tax d