Form lumber

From the 2024 DOR Tax Exemption Study

82.08.0274; 82.12.0268 - Form lumber Description Form lumber used in construction to mold concrete is exempt from sales and use taxes when incorporated into the same project. The exemption applies only to projects done by contractors for other persons. Therefore, form lumber used by "speculative" builders is not exempt under this provision. Purpose To exempt the contractor's intervening use as a consumer of form lumber. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.126 $0.131 $0.137 $0.142 Local Taxes $0.057 $0.059 $0.062 $0.064 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.120 $0.137 $0.142 Local Taxes $0.000 $0.054 $0.062 $0.064 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - A growth rate using the compound annual growth rate of 4.2%. - Lumber makes up 50% of formwork materials. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Department of Revenue, Excise tax data - The Insight Partners, Fo