Returnable containers

From the 2024 DOR Tax Exemption Study

82.08.0282; 82.12.0276 - Returnable containers Description Sales and use of returnable food or beverage containers are exempt from sales and use taxes. This includes items such as soft drinks, milk, and beer. Purpose Retailer purchases of nonreturnable food and beverage containers are exempt from sales and use taxes because the containers are sold to consumers. This exemption provides comparable treatment for returnable containers that would not otherwise qualify for the resale exemption, since the containers are not technically "sold" to the food or beverage purchaser. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.032 $0.032 $0.033 $0.034 Local Taxes $0.014 $0.015 $0.015 $0.015 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.030 $0.033 $0.034 Local Taxes $0.000 $0.013 $0.015 $0.015 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - The annual rate of purchases is 20% of growth of the industry, which is 2.3%. - Local revenue estimates use the statewide av