Tree trimming under power lines

From the 2024 DOR Tax Exemption Study

82.04.050(3)(d)(ii) - Tree trimming under power lines Description The definition of retail sales excludes charges for pruning, trimming, repairing, removing, and clearing trees and brush near electric transmission or distribution lines or equipment. To qualify, the work performed must be by or under the direction of an electric utility. Purpose To clarify the taxability of these activities in light of the extension of sales tax to landscaping services in 1993, these services are not akin to landscaping but are done out of necessity to keep power lines clear of interference from trees and brush. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.860 $7.240 $7.650 $8.080 Local Taxes $3.800 $4.010 $4.239 $4.480 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $6.640 $7.650 $8.080 Local Taxes $0.000 $3.340 $4.240 $4.480 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the five-year average growth rate of service B&O taxable for these activities.