Constitutionally exempt sales

From the 2024 DOR Tax Exemption Study

82.08.0254; 82.12.0255 - Constitutionally exempt sales Description The Washington and U.S. Constitutions prohibit the taxation of certain activities. Sales and purchases from these activities are exempt from sales and use taxes. This includes, but is not limited to: - Sales sourced to a location outside of Washington. - Sales to the U.S. Government. - Sales to Indian tribes or tribal members in Indian country. Purpose To avoid violating state and federal laws. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4,547.840 $4,718.163 $4,887.548 $5,063.157 Local Taxes $2,045.177 $2,121.772 $2,197.945 $2,276.916 Repeal of Repealing this exemption would not increase revenues as the U.S. and Washington exemption Constitutions prohibit the taxation of certain activities. Potential ($ 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$0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions No revenues are realized if the state law is repealed, these sales are also constitutionally exempt at the federal level. Data Sources Department of Revenue, Excise tax data Additional Additional Information Informat