WAC 209

Agriculture

Farmer's Retail Sales Tax Exemption Certificate(Sample)

Guidelines for the Agricultural Burning Exemption

Agricultural Tax Guide

"Tax year," "taxable year."

"Consumer."

"Agricultural product," "farmer."

Tax on international investment management services or other business or service activities.

Exemptions -- Sales of agricultural products.

B&O exemption; unprocessed milk

Exemption - Honey bee products

Exemption - Bee pollination services

Farming for Hire and Horticultural Services Performed for Farmers has been revised to: · Include verbiage that marijuana is not included in the definition of an “agricultural product” (subsection (2)(b)); · Include verbiage that services related to the cultivation of marijuana is not included in the definition of “horticultural services” (subsection (2)(c)); and · Simplify verbiage pertaining to reseller permits in subsection (5)(c).

These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.

Farming for hire and horticulture services performed for farmers.Effective 4/10/94

Processing Perishable Meat Products. The Department issued Excise Tax Advisory (ETA) 3122.2011 Processing Perishable Meat Products. This ETA was originally issued as ETA 2035 in March 2007 to explain who is entitled to the preferential business and occupation (“B&O”) tax rate based on the Washington State Supreme Court decision, Agrilink Foods, Inc. v. Washington State Department of Revenue, 153 Wn.2d 392 (2005). The following header has been added to this ETA to explain that it does not apply during the period of June 1, 2010 through December 1, 2010.

Livestock Nutrient Management Equipment Sales Tax Exemption Suspended

Tax on Equipment Used to Reduce Agricultural Burning

Hazardous Substance Tax Exemption for agricultural crop protection products

Dairy Nutrient Management Sales/Use Tax Exemption & Dairy Farmer Sample Application

Replacement Parts for Irrigation Systems and Water Wells

Repair Parts and/or Services for Farm Machinery and Equipment - Sales and Use Tax Exemptions Form 40 2419 (6/18/07) Application; Form 40 2420a (6/18/07) Exemption Certificate.

B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products Updated 11/17/10

Tax Incentives to Reduce Agricultural Burning

Services for Farmers - B&O and Public Utility Tax Exemption

Tax Incentives to Reduce Agricultural Burning to Change

The Tax Application for Tree and/or Stump Removal from Existing Orchards

Livestock Nutrient Management - Tax Exemptions

Processors of Perishable Meat Entitled to Lower B&O Tax Rate Effective December 2, 2010

B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products Updated 11/17/10

Sales and Use Tax Exemption to Farmers and Veterinarians for Animal Pharmaceuticals

Pesticides and the Hazardous Substance Tax

B&O Tax Preferences for Perishable Meat Products and Fresh Fruit or Vegetable Products

Sales Tax Exemption to Reduce Agricultural Burning Expired 1/1/11

Livestock Nutrient Management Equipment Sales Tax Exemption Reinstated

Replacement Parts for Farm Machinery and Equipment - Sales and Use Tax Exemption

Changes to the B&O Tax Preferences for Perishable Meat Products and Fruit or Vegetable Products

Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions Update

Tax Changes for Manufacturers of Dairy Products

Farm Fuel Users - Sales and Use Tax Exemption Update

Farmers - Sample Letter to Revenue to Apply for Dairy Nutrient Sales and Use Tax Exemption

Farmers - Implementation Plan for New Tax Exemptions and Assistance for Farmers

Change to the Sales Tax Exemption for Livestock Nutrient Management

Farmworker Drinking Water

Farm Fuel Users - Sales and Use Tax Exemption

B&O TAX--COMBINE WORK PERFORMED BY A FARMER FOR OTHERS--CASUAL AND ISOLATED OCCURRENCES vs. ENGAGING IN BUSINESS--TAXABLE ACTIVITIES. Where a farmer accommodates neighboring farmers by offering his services to operate his farm equipment for their farming use on a regular basis, the farmer is engaging in a taxable business activity in addition to his farming business. The activity is in competition with other renters of farm equipment and services and is subject to B&O tax.

RETAIL SALES TAX LIQUID NITROGEN CHERRIES ASPARAGUS DECAY.Sales of liquid nitrogen applied directly on post-harvest cherries to prevent decay are not retail sales.Sales of liquid nitrogen applied in asimilar manner to asparagus are retail sales.

RETAIL SALES TAX M&E TAX EXEMPTION CONDITIONING OF SEED.An agricultural business is not entitled to a refund of sales tax it paid for the purchase, installation, and repair of machinery and equipment it uses to condition seed for planting because conditioning of seed for use in planting is not a manufacturing activity.

SALES TAX USE TAX DEDUCTION --CHEMICAL USED IN PROCESSING SPRAY MATERIALS.Even if spray materials qualified as a chemical for purposes of the exemption, in this case their use appears to occur prior to any processing taking place because the potatoes are sprayed at the time of harvest, when they are put into storage.

WHOLESALING B&O TAX -- SALES OF SPRAY TO FARMERS -- FARMER DEFINED.Sales of spray materials to farmers for the purpose of producing for sale any agricultural product are classified as wholesale sales.However, if a person uses agricultural products as ingredients in a manufacturing process, the person does not qualify as a farmer.A person will qualify as a farmer, provided:1) the person grows or produces an agricultural product on the persons own land or land in which the person has a present right of possession; and 2) the person does not use such products as ingredients in a manufactur

SALES TAX USE TAX DEDUCTION -- SPRAY MATERIALS PACKING MATERIALS.The definition of packing materials does not encompass spray materials.The definition of packing materials is limited to materials in which tangible personal property may be contained or protected within a container, for transportation or delivery to a purchaser.Because the spray materials do not contain or protect the potatoes, nor are they used for transportation or delivery, spray materials do not qualify for the deduction

SALES OF CHEMICAL SPRAYS FOR THE POST HARVEST TREATMENT OF FRUIT SALES TAX USE TAX DEDUCTION --POTATOES.The exception from the definition of a retail sale set forth in RCW 82.04.050(3) applies to sales of spray for fruit and not vegetablesAs such, it does not apply to sales of spray for potatoes.

RETAIL SALES TAX MANUFACTURING MACHINERY AND EQUIPMENT (M&E) EXEMPTION MANUFACTURING OPERATION MANUFACTURING SITE -- PEA COMBINE MANUFACTURING VERSUS HARVESTING.Where pea combines are used in farmers fields to strip pea pods from vines and to de-pod peas, the pea combines are used in a harvesting activity, not a manufacturing activity.Although harvesting activities may change the form of products and enhance their value, this does not convert a harvesting activity to a manufacturing activity.Accordingly, the farmers fields do not qualify as manufacturing sites, and the combines are not

RCW 82.08.890: RETAIL SALES TAX EXEMPTIONS - DAIRY NUTRIENT MANAGEMENT EQUIPMENT.The taxpayer is ineligible for the exemption for the purchase of dairy nutrient management equipment in RCW 82.08.890 because it purchased the equipment in question prior to certification of its dairy nutrient management plan under chapter 90.64 RCW.