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A Report on the Feasibility of Textbook Rental - IBHE

A Report on the Feasibility of Textbook Rental - IBHE

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Washingt<strong>on</strong>. House Bill 3034 would provide a sales tax exempti<strong>on</strong> <strong>on</strong> textbooks when purchasedat a bookstore located in Washingt<strong>on</strong> or <strong>on</strong>line from retailers based in <strong>the</strong> State. The Office <strong>of</strong> FinancialManagement estimated <strong>the</strong> fiscal impact <strong>of</strong> <strong>the</strong> bill would result in a loss <strong>of</strong> $12.0 milli<strong>on</strong> in <strong>the</strong> State’sgeneral revenue for fiscal year 2007. Thereafter, <strong>the</strong> loss in general revenue would be $12.7, $13.4, $14.1and $14.8 milli<strong>on</strong> for fiscal year 2008, 2009, 2010, and 2011, respectively. Local sales revenue wouldexperience a $3.7 milli<strong>on</strong> loss in fiscal year 2007 and grow to a loss <strong>of</strong> $4.6 milli<strong>on</strong> by 2011. House Bill3034 was referred to <strong>the</strong> House Finance Committee <strong>on</strong> January 18, 2006.-69-

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