Exemption
Natural and manufactured gas
Retail Sales & Use Tax exemption · RCW 82.08.026; 82.12.023; 82.14.030(1) · enacted 1989
Details
- Citation
- RCW 82.08.026; 82.12.023; 82.14.030(1)
- Study reference
- E1597-1
- Tax type
- Retail Sales & Use Tax
- Preference type
- Exemption
- Category
- Tax Base
- Year enacted
- 1989
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: -19.013 · FY 2026: -20.741 · FY 2027: -20.741
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 16.402 · FY 2026: 17.893 · FY 2027: 17.893
- Taxpayer savings — local ($M)
- FY 2024: -20.741 · FY 2025: -20.741 · FY 2026: -20.741 · FY 2027: -20.741
- Taxpayer savings — state ($M)
- FY 2024: 17.893 · FY 2025: 17.893 · FY 2026: 17.893 · FY 2027: 17.893
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.08.026; 82.12.023; 82.14.030(1) - Natural and manufactured gas Description Natural and manufactured gas delivered through a pipeline that is subject to the special use tax on brokered gas under is exempt from sales and use taxes. Purpose Washington businesses that distribute natural gas are subject to public utility tax. Large industrial customers may purchase gas directly from out-of-state suppliers through brokers that are not subject to public utility tax. Starting in 1989 these large industrial customers started paying a use tax equivalent to the public utility tax. This exemption assures that these purchases are subject to the special use tax, rather than sales and use taxes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $17.893 $17.893 $17.893 $17.893 Local Taxes ($20.741) ($20.741) ($20.741) ($20.741) Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $16.402 $17.893 $17.893 Local Taxes $0.000 ($19.013) ($20.741) ($20.741) Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in
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