Items used in interstate commerce

From the 2024 DOR Tax Exemption Study

82.08.0261(1) - Items used in interstate commerce Description Sales of tangible personal property, such as linens, bedding, chairs and tableware (excluding airplanes, trains, and vessels) to air, rail, or water private or common carriers for use in their business are exempt from sales tax. Any actual use of the item in Washington is subject to use tax. Purpose To encourage the purchase of these items in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $24.543 $24.451 $24.539 $24.780 Local Taxes $11.037 $10.996 $11.035 $11.144 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $22.414 $24.539 $24.780 Local Taxes $0.000 $10.080 $11.035 $11.144 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the transportation services consumer demand growth rate reflected in the S&P Global Intelligence March 2023 forecast. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Implan, Region Industry