Tax paid to other states

From the 2024 DOR Tax Exemption Study

82.12.035 - Tax paid to other states Description The amount of sales or use tax paid to another state, foreign county, or political subdivision of another state or foreign county may be credited towards use tax due for items used in Washington. The credit is limited to the amount of Washington use tax otherwise due. Purpose The primary function of use tax is to complement sales tax by asserting tax in situations where the Washington sales tax did not apply (purchases made in other states, items bought from private parties, etc.). This credit avoids overtaxing items when tax was paid to another jurisdiction. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.639 $0.662 $0.692 $0.724 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit may increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.606 $0.692 $0.724 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 mirrors the use taxable activity growth rate reflected in the Economic and Reve