Fuel for urban transit or passenger-only ferries

From the 2024 DOR Tax Exemption Study

82.08.0255(1)(a,c); 82.12.0256(2)(a,c) - Fuel for urban transit or passenger-only ferries Description Motor vehicle fuel purchased for the purpose of providing public transportation is exempt from sales and use taxes. The fuel must also be exempt under the motor vehicle and special fuel taxes. This exemption also applies to fuel purchased by a public transportation benefit area, or a county-owned ferry or county ferry district for use in passenger-only ferries. Purpose To reduce the cost of providing public transit and encourage the use of these systems by riders. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.197 $6.342 $6.510 $6.708 Local Taxes $2.787 $2.852 $2.928 $3.017 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $5.813 $6.510 $6.708 Local Taxes $0.000 $2.614 $2.928 $3.017 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the transportation energy price growth rate reflected in the U.S. Energy Information Administration annual ene