Donations to nonprofits and government

From the 2024 DOR Tax Exemption Study

82.12.02595 - Donations to nonprofits and government Description Tangible personal property donated to nonprofit charitable organizations and state or local governments are exempt from use tax. In addition, labor and services rendered in respect to installing, repairing, cleaning, altering, imprinting, or improving personal property that are donated to nonprofit charitable organizations and state or local governments are also exempt from use tax. Purpose To allow charitable donations to take place without incurring use tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.410 $1.460 $1.520 $1.570 Local Taxes $0.630 $0.660 $0.680 $0.710 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.340 $1.520 $1.570 Local Taxes $0.000 $0.600 $0.680 $0.710 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sale and use taxes growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the stat