Horticultural packing materials

From the 2024 DOR Tax Exemption Study

82.08.0311; 82.12.0311 - Horticultural packing materials Description Materials and supplies used directly in packing fresh, perishable horticultural products are exempt from sales and use taxes. Purpose To support the agricultural industry. The exemption complements the B&O tax deduction for processors of fresh horticultural products. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.492 $0.494 $0.497 $0.500 Local Taxes $0.142 $0.143 $0.144 $0.144 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.453 $0.497 $0.500 Local Taxes $0.000 $0.119 $0.144 $0.144 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the real consumer spending forecast growth rates reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Cost of packaging materials represents 0.25% of production values. - Local revenue estimates use the rural average local sales and use tax rate of 1.88%. Data Sources - U.S. Department of Agriculture, 2017 Census an