Sand and gravel for local road construction

From the 2024 DOR Tax Exemption Study

82.04.415 - Sand and gravel for local road construction Description B&O tax does not apply to the cost of labor and services performed in mining, sorting, crushing, screening, washing, hauling, and stockpiling of sand, gravel and rock taken from a pit owned by or leased to a city or county. The sand, gravel or rock must be either: - Placed on a street of the city or county. - Sold 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 $0.270 $0.290 $0.310 $0.320 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.260 $0.310 $0.320 Local Taxes $0.000 $0.000 $0.000 $0.000 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 6.0% based on excise tax data. - Sand and gravel used in local construction represent 7.5% of government contrac