Cash discounts

From the 2024 DOR Tax Exemption Study

82.08.010(1)(b) - Cash discounts Description The selling or sales price of a retail sale does not include cash, term, or coupon discounts taken by a purchaser and not reimbursed to the seller by a third party. These discounts are deductible from the selling or sales price when determining the amount of sales tax to collect. Purpose To avoid requiring sellers to remit or pay tax on amounts they did not receive. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $29.700 $30.900 $31.990 $33.230 Local Taxes $12.900 $13.400 $13.900 $14.400 Repeal of Repealing this exclusion would not increase revenues. Businesses deduct cash exemption discounts as an accounting convenience and would likely alter their method of reporting tax if the exclusion were repealed. Potential ($ 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 - A repeal of this exemption results in no revenue impact. Data Sources - Department of Revenue, Excise tax data - Joint Legislative Audit and Review Committee, Report 09-11: 2009 Full Tax Preference Performance Reviews Additiona