Trademarked carbonated beverage syrup

From the 2024 DOR Tax Exemption Study

82.04.4486 - Tax paid on carbonated beverage syrup Description Businesses that pay the syrup tax may claim a B&O tax credit for 100% of the syrup tax paid if the business: - Uses the syrup to make carbonated drinks. - Sells the carbonated drinks. The carbonated beverage syrup tax is $1.00 per gallon. The tax applies to syrup used in producing carbonated beverages that are not trademarked. Purpose To provide tax relief to the restaurant industry by offsetting their syrup tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.190 $4.120 $4.050 $3.980 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.780 $4.050 $3.980 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 reflects the compound annual growth rate of -1.71% based on the historical syrup B&O tax credit data. - Taxpayers that pay carbonated beverage syrup tax have sufficient B&O tax liability to utilize the full amoun