Political subdivision consolidation sales

From the 2024 DOR Tax Exemption Study

82.08.0278(2), 82.12.0274(2) - Political subdivision consolidation sales Description Tangible personal property sold by one political subdivision to another in conjunction with a contractual consolidation is exempt from sales and use taxes when the political subdivision that originally paid the sales or use taxes on the tangible personal property continues to benefit from the property after the consolidation. Purpose To avoid taxing the non-enterprise activities of local governments. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes Minimal Minimal Minimal Minimal Local Taxes Minimal Minimal Minimal Minimal 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 Minimal Minimal Minimal Local Taxes $0.000 Minimal Minimal Minimal Assumptions Sales of tangible personal property from one political subdivision to another as a result of consolidation is rare. Because of this, the revenue impact from a repeal is minimal. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Government Ye