RETAIL SALES & USE TAX: OTHER EXEMPTIONS

82.04.050 PERSONAL & PROFESSIONAL SERVICES

Description: The sales tax originally applied only to the sale of tangible personal property and thus, by definition, excluded services from the base. Since 1935 some services have been added to the tax base, mainly services to tangible personal property (e.g., repair) in 1939, construction in 1941, rental of tangible personal property in 1959 and amusement/recreation activities in 1961, and landscape maintenance, guided tours, physical fitness, and certain miscellaneous personal services in 1993.

Purpose: The primary reasons for exclusion of services were: (1) to maintain simplicity by taxing only one homogenous class of property (i.e., tangible goods); (2) to conform to the practice of other states, and (3) the recognition that services did not constitute such a large share of the state economy in 1935 as they do presently.

Category/Year Enacted: Services; 1935.

Primary Beneficiaries: The majority are individuals and businesses that use personal and professional services. The major types of exempt services include medical, legal, engineering and other business services.

Conflict With Other Programs: None evident. However, if the intention of the retail sales tax is to tax purchases for consumption, then there is no theoretical reason that any services should be excluded.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 1,490,853 1,532,597 1,600,338 1,668,352
Local taxes 389,915 400,833 418,550 436,338

If the tax were extended to all services, would the estimated revenue be realized? Yes.

82.04.050(2a) HOSPITAL LAUNDRY SERVICE

Description: Excluded from the definition of retail sale are charges made for laundry services to nonprofit health care facilities.

Purpose: Originally, this was limited to laundry service provided to an association of nonprofit hospitals. In 1998 it was extended to any health care facility.

Category/Year Enacted: Nonprofit - health/social services; 1973 (extended to any health care facility in 1998).

Primary Beneficiaries: The beneficiaries of this exemption are several nonprofit hospitals which have formed an association to jointly perform their laundry services, as well as other health care facilities.

Conflict With Other Programs: Other cleaning services are taxable.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 105 110 116 121
Local taxes 27 29 30 32

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.04.050(2a) COIN-OPERATED LAUNDRY FACILITIES

Description: Coin-operated laundries are exempt from sales tax when they are located in apartment houses, rooming houses or mobile home parks for the exclusive use of their tenants.

Purpose: The exemption helps to offset the regressive nature of the sales tax, because many tenants who use on-site coin-operated laundries have low incomes. Also, the tax previously placed compliance burdens on the industry. Apartment owners, most of whom do not pay any other state excise taxes, needed to become registered with the state in order to remit this sales tax. On the other hand, since many apartment owners did not comply, an unfair portion of the tax burden fell on those that did comply and on the firms that contracted with apartment owners.

Category/Year Enacted: Individuals; 1998.

Primary Beneficiaries: Firms that contract with apartment owners to provide laundry services, apartment owners and apartment dwellers.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 2,573 2,645 2,762 2,880
Local taxes 673 692 722 753

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.04.050(3e) TREE TRIMMING UNDER POWER LINES

Description: Pruning, trimming, repairing, removing and clearing of trees and brush near electric power transmission or distribution lines is exempt from retail sales tax. This clarifies the tax liability of such activity in light of the extension of sales tax to landscaping services in 1993.

Purpose: To exempt from sales tax the trimming of trees under electric power lines.

Category/Year Enacted: Not intended in the tax base; 1995.

Primary Beneficiaries: Firms that prune trees and brush under electric power transmission lines and the power companies that contract for their services.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 2,600 2,665 2,730 2,795
Local taxes 681 698 715 732

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.04.062 PRECIOUS METALS AND BULLION

Description: Sales of precious metals and monetized bullion from stock are exempt from the sales tax. Wholesale and retail sales are also exempt from B&O tax, but the dealers are subject to the service rate on the commissions they receive from such transactions.

Purpose: To provide relief to coin and bullion dealers who experience competition from states which do not collect sales tax, since such transactions are easily made via mail order.

Category/Year Enacted: Economic development; 1985.

Primary Beneficiaries: Coin and bullion investment dealers and purchasers.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000* FY 2001 FY 2002 FY 2003
State taxes 3,105 1,380 2,070 2,070
Local taxes 814 362 542 542

*reflects abnormally high purchases due to Y2K.

If the exemption were repealed, would the estimated revenue be realized? Yes; however, sales of coin and bullion are very sensitive to the sales tax rate and a large volume of these items were previously purchased via mail order when the tax was previously applied. While use tax would apply to such purchases, this would be very difficult to collect.

82.08.010(1) TRADE-INS

Description: The definition of selling price for purchases subject to retail sales tax excludes the value of trade-in property of "like kind" items.

Purpose: To encourage purchases of new items--primarily vehicles, farm machinery, musical instruments, etc.--by allowing the deduction of the value of used items which are accepted by dealers as trade-ins from the price to which sales tax applies.

Category/Year Enacted: Individuals; 1984 (by initiative of the voters).

Primary Beneficiaries: Vehicle and farm implement dealers; persons who trade in used vehicles, boats, recreational vehicles, motorcycles, farm implements and other used items toward the price of a new like item.

Conflict With Other Programs: Although not a state "program," the exemption does discriminate against persons who sell used vehicles to private purchasers, rather than trading in their used vehicles to dealers.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 110,370 112,909 115,506 118,162
Local taxes 29,206 29,877 30,565 31,268

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0251 CASUAL & ISOLATED SALES

Description: Provides an exemption for individuals who are not engaged in business and do not collect sales tax. Since all casual sale items are subject to use tax by the purchaser, the revenue impact is theoretically zero. However, it is unknown how much use tax is actually paid on such purchases.

Purpose: The purpose is evidently to limit the retail sales tax collection and reporting to businesses. Also the exemption recognizes the practical problems associated with locating and registering casual sellers and collecting the tax.

Category/Year Enacted: Individuals; 1935.

Primary Beneficiaries: Garage sale participants and businesses that sell their used equipment.

Conflict With Other Programs: Yes. Since use tax is reportable by the purchaser, theoretically the exemption only transfers responsibility for reporting the tax from the seller to the buyer. In some cases, such as sales of vehicles between individuals, this law makes it more practical to collect the use tax (from the buyer when title is transferred).

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 5,254 5,313 5,374 5,436
Local taxes 1,390 1,406 1,422 1,438

If the exemption were repealed, would the estimated revenue be realized? Because of the cost of registering casual sellers and difficulties of enforcement, it is unlikely that the potential revenue would be obtained.

82.08.0253 NEWSPAPERS

Description: Whether sold by subscription or sold at retail at newsstands, bookstores and supermarkets, sales of newspapers are exempt from retail sales tax. (Legislation adopted in 1993 contains a definition of newspaper; previously the definition was by administrative rule of the Department of Revenue; the rule also extends the exemption to the use tax.)

Purpose: The purpose of this exemption was presumably to recognize the practical problem of collecting the tax on individual sales of less than five cents, the price of a newspaper in 1935. Also, it has been argued that newspaper carriers (mostly youth) should not have the responsibility of collecting and reporting the tax.

Category/Year Enacted: Individuals; 1935.

Primary Beneficiaries: Purchasers of newspapers.

Conflict With Other Programs: Other published materials (books and magazines) are subject to sales tax.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 11,213 11,470 11,734 12,004
Local taxes 2,967 3,035 3,105 3,176

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.02535 FUND-RAISING SALES OF MAGAZINES

Description: Magazine subscriptions made by schools or nonprofit organizations for purposes of fund-raising are exempt from retail sales tax.

Purpose: The purpose is to support the fund-raising activities of schools and nonprofit organizations.

Category/Year Enacted: Other; 1995.

Primary Beneficiaries: Schools and nonprofit organizations, and magazine companies that solicit sales via fund-raising promotions.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 434 447 460 474
Local taxes 113 117 120 124

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.02537 ACADEMIC TRANSCRIPTS

82.12.0347

Description: Provides exemption from sales and use taxes for public and private educational institutions which charge fees for providing academic transcripts.

Purpose: The purpose is presumably to provide tax relief for students who pay a fee for academic transcripts. The exemption also recognizes the practical problems associated with reporting and collecting the tax by educational institutions.

Category/Year Enacted: Individuals; 1996.

Primary Beneficiaries: Students and former students.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 76 78 80 82
Local taxes 20 21 21 21

If the exemption were repealed, would the estimated revenue be realized? Not likely; practical difficulties associated with reporting and collecting the tax would limit the amount of potential revenue.

82.08.0255(1b) MOTOR VEHICLE & SPECIAL FUEL

82.12.0256(3)

Description: Fuel subject to the motor vehicle fuel tax or special fuel tax (i.e., fuel used on the public highways) is exempt from retail sales and use tax.

Purpose: The presumed purpose is to avoid double taxation.

Category/Year Enacted: Individuals; 1935.

Primary Beneficiaries: All highway users of motor fuels.

Conflict With Other Programs: No; except the exemption violates the concept of a comprehensive retail sales tax on all tangible personal property purchased for consumption.

Tax Savings ($000):* FY 2000 FY 2001 FY 2002 FY 2003
State taxes 171,228 170,672 175,101 179,348
Local taxes 44,862 44,716 45,876 46,989

*Estimates basedon the retail price of fuel excluding federal & state gas taxes.

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.02573 NONPROFIT ORGANIZATION FUND-RAISING

Description: Nonprofit organizations that receive revenues via fund-raising activities are exempt from retail sales tax, as long as the funds are used to support the purposes of the organization. Exemption does not extend to the regular operation of a bookstore, thrift shop or restaurant.

Purpose: The purpose is to support the fund-raising activities of nonprofit organizations.

Category/Year Enacted: Nonprofit, charitable or religious; 1998 (Note: this comprehensive exemption replaced more limit exemptions for bazaars, rummage sales and auctions).

Primary Beneficiaries: Nonprofit organizations which generate revenue through fund-raising sales.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 338 356 375 394
Local taxes 85 89 94 99

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0258 RED CROSS

82.12.0259

Description: The American Red Cross is exempt from retail sales/use tax on items they purchase.

Purpose: The purpose is to support the programs and social benefits which the Red Cross provides.

Category/Year Enacted: Nonprofit - health or social welfare; 1945.

Primary Beneficiaries: The Red Cross is the only qualifying organization.

Conflict With Other Programs: None evident.

Tax Savings ($000): Due to confidentiality requirements, the impact of this exemption cannot be publicly stated because it is believed to affect fewer than three taxpayers.

82.08.02581 LANDSLIDES; MOVING/DEMOLISHING HOMES

Description: Provides exemption from sales tax for labor or services involved in moving or demolishing houses or debris in a federally declared disaster area due to landslides. The exemption expires on July 1, 2000.

Purpose: To provide disaster relief.

Category/Year Enacted: Individuals; 1999.

Primary Beneficiaries: Owners of approximately 139 homes in the Kelso/Alderwood landslide area.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 13 75 - - - -
Local taxes 3 19 - - - -

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.02795 FREE PUBLIC HOSPITALS

82.12.02745

Description: Exempts from retail sales and use tax items of tangible personal property purchased by free hospitals and used in the operation of the hospital or the provision of health care services. Such hospitals do not charge patients for health care services.

Purpose: The purpose is to support health services provided by hospitals which do not charge patients.

Category/Year Enacted: Other; 1993.

Primary Beneficiaries: One such hospital operates in the state.

Conflict With Other Programs: None evident.

Tax Savings ($000): Due to confidentiality requirements, the impact of this exemption cannot be publicly stated because it is believed to affect fewer than three taxpayers.

82.08.02805 BLOOD BANKS

82.12.02747

Description: Nonprofit blood, bone and tissue banks are exempt from paying retail sales or use tax on purchases of medical supplies, chemicals and materials (not construction materials, office or building equipment, administrative supplies or vehicles).

Purpose: The purpose is to support the activities of nonprofit blood banks and achieve parity with other nonprofit organizations that provide similar services.

Category/Year Enacted: Nonprofit, health or social welfare; 1995.

Primary Beneficiaries: Three nonprofit blood banks that operate in Washington.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 225 233 242 250
Local taxes 67 70 72 75

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.02806 HUMAN BODY PARTS

82.12.02748

Description: Sales of human blood, tissue, organs, bodies or body parts are exempt from retail sales/use tax when they are used for medical research or quality control testing.

Purpose: The purpose is to encourage medical research in this state.

Category/Year Enacted: Nonprofit, health or social welfare; 1996.

Primary Beneficiaries: Medical research companies.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 411 423 442 460
Local taxes 108 111 116 120

If the exemption were repealed, would the estimated revenue be realized? The actual revenue impact would be somewhat less, since the use of human body parts in medical research is a relatively new activity and most taxpayers were unaware of their tax liability before adoption of this exemption. If the exemption were repealed, many taxpayers would still be unaware of their liability, but eventually most companies would begin to report and the revenue would be realized.

82.08.0281 PRESCRIPTION DRUGS

82.12.0275

Description: Sales of prescription drugs for use by humans, including prescription lens for eyeglasses and prescribed birth control, are exempt from retail sales/use tax when prescribed by a physician. This exemption is available for all levels of sales and distribution. It is not required that the hospital or physician make a specific charge to the patient for prescription drugs dispensed under a physician's order.

Purpose: The purpose is evidently to reduce the cost of medical and health care.

Category/Year Enacted: Individuals; 1974 (birth control added in 1993).

Primary Beneficiaries: Patients, physicians, and hospitals who purchase prescription drugs, medicines and lens.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 130,428 134,080 140,007 145,957
Local taxes 34,112 35,067 36,617 38,173

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0282 RETURNABLE CONTAINERS

82.12.0276

Description: Sales of returnable food and beverage containers are exempt from sales/use tax.

Purpose: The exemption was enacted to clarify legislative intent that, in purchasing food and beverages in returnable containers, only the contents are being purchased--not the containers. Any deposit that is paid to ensure return of the containers to the retailer is not taxable.

Category/Year Enacted: Individuals; 1974.

Primary Beneficiaries: Mainly purchasers of soft drinks in returnable beverage containers.

Conflict With Other Programs: None evident.

Tax Savings ($000): Minimal; many beverage containers are now plastic and nonreturnable; cans and bottles are more often recycled than returned.

82.08.0283 MEDICAL DEVICES

82.12.0277

Description: Sales of insulin, prosthetic and orthotic devices prescribed for individuals by licensed physicians, chiropractors or osteopaths, ostomic items, medically prescribed oxygen, hearing aids and repair of hearing aids, and components of prosthetic, ostomic and dental devices are exempt from sales/use tax.

Purpose: The purpose is to lessen the cost of medical care.

Category/Year Enacted: Individuals; 1975 (hearing aids added in 1986, repair of hearing aids added in 1997, and components of prosthetic, ostomic or dental devices added in 1998).

Primary Beneficiaries: Individuals who have medical problems requiring insulin, oxygen, orthotic, prosthetic or ostomic devices, or hearing aids.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 28,631 29,437 30,733 32,039
Local taxes 7,488 7,698 8,038 8,380

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0289 LOCAL RESIDENTIAL TELEPHONE SERVICE

Description: In 1983 the sales tax was extended to charges made for telephone service; local calls made by residential customers and calls made from coin-operated facilities were exempted.

Purpose: The purpose is evidently to relieve the tax burden on the "necessary" portion of telephone service (e.g., local calls made for emergency purposes). Presumably, there is greater "ability-to-pay" for business telephone service and long distance service for individuals. The exemption for coin-operated calls is essentially due to administrative convenience, since it would be difficult to collect the tax via phone booths.

Category/Year Enacted: Individuals; 1983.

Primary Beneficiaries: Individuals who use telephones in residences for local calls and those who make calls from coin-operated telephones.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 41,819 42,614 43,423 44,248
Local taxes 10,937 11,145 11,357 11,573

If the exemption were repealed, would the estimated revenue be realized? Yes; although collection of the tax from coin-operated facilities could be administratively difficult.

82.08.0291 YOUTH ORGANIZATIONS

82.12.02917

Description: Amusement, recreation and physical fitness services provided by nonprofit youth organizations to members of the organization and physical fitness classes provided by a local government are exempt from retail sales tax.

Purpose: The purpose is to support the activities of nonprofit youth organizations, the participants of youth recreational programs and local government physical fitness classes.

Category/Year Enacted: Nonprofit - charitable or religious; 1981; significant expansion in 1994.

Primary Beneficiaries: Approximately 200 nonprofit youth organizations, members of these organizations and participants of physical fitness classes sponsored by local government.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 1,609 1,658 1,707 1,758
Local taxes 371 382 394 406

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0293 FOOD PRODUCTS

82.12.0293

Description: This exemption removes food products for home consumption from the retail sales tax base. Food for home consumption was originally removed from the sales tax base in July 1978 as a result of Initiative 345, approved by the voters in 1977.

Purpose: Exemption of food lessens the regressivity of the sales tax (i.e., provides proportionately greater relief for low income persons) and reduces the cost of essential items for household consumption.

Category/Year Enacted: Individuals; 1977. Adopted by initiative of the voters in November 1977, effective July 1, 1978. The Legislature temporarily repealed the exemption from May 1, 1982 through June 30, 1983.

Primary Beneficiaries: Consumers who purchase food for home consumption. Because the proportion of household income spent on food generally decreases as income levels increase, the exemption provides greater relative benefit to lower income households.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 565,493 581,327 607,021 632,820
Local taxes 147,898 152,039 158,759 165,507

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.0297 FOOD STAMP PURCHASES

82.12.0297

Description: Items purchased with food stamps issued by the U.S. Department of Agriculture are exempt from sales/use tax. This includes products such as soft drinks, dietary supplements, bottled water, and cold prepared deli items, which are not considered food items eligible for exemption under RCW 82.08.0293.

Purpose: This statute brings state law into conformance with 1985 federal legislation requiring states to exempt food stamp purchases from sales taxes.

Category/Year Enacted: Individuals; 1987.

Primary Beneficiaries: Food stamp recipients.

Conflict With Other Programs: Yes; the definition of products eligible for sales tax exemption does not include several items which the federal government allows to be purchased with food stamps.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 2,052 2,109 2,202 2,296
Local taxes 537 552 576 601

If the exemption were repealed, would the estimated revenue be realized?

No; federal law prohibits taxing such purchases.

82.08.031 ARTS & CULTURAL ORGANIZATIONS

82.12.031

Description: Sales to artistic or cultural organizations of objects which are acquired for the purpose of exhibition or presentation to the general public are exempt from sales/use tax.

Purpose: The purpose is to support these organizations and the social benefits accruing from the activities they engage in.

Category/Year Enacted: Nonprofit - arts or cultural; 1981.

Primary Beneficiaries: Arts organizations and their patrons.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 353 353 353 353
Local taxes 82 82 82 82

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.033 USED MOBILE HOMES

82.12.033

Description: The sale, rental or lease of used mobile homes is exempt from sales/use tax. (Sales of used mobile homes that are attached to the land are subject to real estate excise tax.)

Purpose: The purpose of the exemption is to provide equal tax treatment to all transfers of residential property after initial acquisition or construction. Purchase of a new mobile home, similar to construction of a conventional residence by a contractor for the owner, is subject to the retail sales tax. Since mobile homes (with very few exceptions) are tangible personal property, subsequent sales would, if not for this law, be taxable as a retail sale.

Category/Year Enacted: Individuals; 1979.

Primary Beneficiaries: Individuals who purchase used mobile homes.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 24,650 25,300 25,900 26,600
Local taxes 6,460 6,630 6,800 6,970

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.036 CORE DEPOSITS; TIRE FEES

82.12.038

Description: The value of returnable products accepted by vendors for recycling or remanufacturing is exempt from sales/use tax. Also excluded from the measure of tax is the amount of the $1.00 tire assessment; however, this tax expired on September 30, 1994 and therefore the reference in these exemption statutes is superfluous.

Purpose: The exemption for core charges (items returned to vendors for recycling or remanufacturing) is unnecessary, since these items are considered as trade-ins which are already exempt. The exemption for tire tax receipts merely guaranteed that the retail sales tax did not apply to the amount of this tax.

Category/Year Enacted: Not intended in the tax base; 1989.

Primary Beneficiaries: Purchasers of rebuilt auto parts, such as engines, starters, and batteries.

Conflict With Other Programs: None evident.

Tax Savings ($000): Minimal.

82.08.830 NONPROFIT CAMPS AND CONFERENCE CENTERS

Description: Exemption from retail sales/use tax is provided for nonprofit organizations that sell or supply items at camps or conferences held on property that is exempt from property tax. These items include lodging, parking, meals, books, tapes and other products available only to participants at such camps or conferences and not to the general public.

Purpose: To support the activities of nonprofit organizations.

Category/Year Enacted: Nonprofit - charitable or religious; 1997.

Primary Beneficiaries: Nonprofit camps and conference centers and their participants.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 134 141 148 156
Local taxes 33 35 37 39

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.08.832 GUN SAFES

Description: Gun safes are exempt from retail sales and use tax. These are defined as locked enclosures specifically designed or modified to store firearms. The exemption does not include trigger lock devices.

Purpose: To encourage the purchase of gun safes.

Category/Year Enacted: Individuals, 1998.

Primary Beneficiaries: Persons who purchase gun safes (and their children).

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 47 48 49 50
Local taxes 12 12 12 13

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.12.801 USE OF VESSELS BY DEALERS

Description: Exemption from state and local use tax is provided for the following uses of vessels and their trailers by a dealer: (1) test, set-up, repair, remodel and making the vessel seaworthy; (2) training of the dealers' employees, (3) activities to promote the sale of the vessel, (4) limited loan or donation of the vessel to nonprofit organizations or governmental entities, (5) transporting, displaying or demonstrating the vessel at boat shows, and (6) delivery, showing and operating the vessel for sale to a prospective buyer.

Purpose: To exempt from use tax incidental use of vessels by the dealer.

Category/Year Enacted: Economic development; 1997.

Primary Beneficiaries: Dealers of vessels and their trailers.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 96 99 103 107
Local taxes 25 26 27 28

If the exemption were repealed, would the estimated revenue be realized? Yes.

82.12.802 VALUATION OF VESSELS HELD FOR SALE

Description: This statute provides that if a vessel held in inventory is used by the manufacturer or a dealer, the use tax shall be based only on the reasonable rental value of the vessel for that particular use, rather than the full market value of the vessel. This base for application of the use tax is available only if the manufacturer or dealer can demonstrate that the vessel is truly held for sale and that a good-faith effort is being made to sell the vessel.

Purpose: To base the applicable use tax on equivalent rental value rather than the full market value of the vessel.

Category/Year Enacted: Economic development; 1997.

Primary Beneficiaries: Manufacturers and dealers of vessels.

Conflict With Other Programs: None evident.

Tax Savings ($000): FY 2000 FY 2001 FY 2002 FY 2003
State taxes 96 99 103 107
Local taxes 25 26 27 28

If the exemption were repealed, would the estimated revenue be realized? Yes.