Purchases by residents of Alaska & Hawaii

From the 2024 DOR Tax Exemption Study

82.08.0269 - Purchases by residents of Alaska & Hawaii Description Sales for use in states, territories, and possessions of the U.S. which are not contiguous to any other state are exempt from sales tax, if the seller delivers the property to an in-state receiving terminal of a carrier that transports the goods to an out-of-state location. Purpose To facilitate sales to residents of Alaska, Hawaii, and U.S. possessions and territories, and encourage trade through Washington ports. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.053 $0.053 $0.055 $0.057 Local Taxes $0.024 $0.024 $0.025 $0.026 Repeal of Repealing this exemption will not increase revenues. Buyers will make alternative exemption shipping arrangements. Potential ($ 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repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions If this exemption is repealed then residents of Alaska, Hawaii, and other U.S. possessions and territories will make alternative shipping arrangements outside the state. Therefore, no revenue impact. Data Sources Department of Revenue, Excise tax data Additiona