Sand and gravel for local road construction

From the 2024 DOR Tax Exemption Study

82.08.0275; 82.12.0269 - Sand and gravel for local road construction Description Sales and use taxes do not apply to the cost of labor and services performed in the mining, sorting, and crushing of sand and gravel taken from a pit owned by or leased to a city or county. The city or county must either: - Place the sand or gravel on a local public street. - Sell it at cost to another city or county for use on public roads. Purpose Reduces the cost of local governments building and maintaining streets and roads. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.650 $3.870 $4.100 $4.350 Local Taxes $1.640 $1.740 $1.850 $1.960 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.550 $4.100 $4.350 Local Taxes $0.000 $1.600 $1.850 $1.960 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate reflects the compound annual growth rate of 6% based on the deduction data. - Sand and gravel used in local construction represents 7.5% of government contracting as reported