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Farm Exemption Tax Matrix

Wholesale Purchases

Reseller Permit (Issued by DOR)

OR

Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Chemical sprays or washes
  • Feed
  • Seed, seedlings
  • Fertilizer
  • Pesticides
  • Enhanced pollination agents
  • Tangible personal property for resale without intervening use

You must apply to the Department for a reseller permit.

REFERENCES
RCW 82.04.050(11)
RCW 82.04.060
WAC 458-20-10201
WAC 458-20-210


Purchases of Propane / Natural Gas to Distill Mint

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Propane
  • Natural Gas

The propane or natural gas must be used exclusively to distill Mint.

REFERENCES
Special Notice – Sales of Propane and Natural Gas to Mint Growers



Animal Pharmaceuticals

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Animal pharmaceuticals approved by the FDA or USDA

The pharmaceuticals must be administered to an animal raised to produce an agricultural product for sale.

REFERENCES
RCW 82.08.880
WAC 458-20-210


Replacement Parts

for qualifying Farm Equipment

Exemption Certificate for Replacement Parts and/or Services for Farm Machinery and Equipment (Issued by DOR)

For purchases of

  • Replacement parts for farm machinery and equipment
  • Labor and services to install replacement part
  • Labor and services to repair farm machinery and equipment

You must apply to the Department for this exemption document.

REFERENCES
Special Notice – Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions
RCW 82.08.855
Application for Exemption Certificate for replacement parts for farm machinery and equipment


Agricultural Employee Housing

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Constructing, repairing, decorating or improving new or existing buildings used for agricultural employee housing
  • Tangible personal property that becomes an ingredient or component of a building or structure used as agricultural employee housing during the course of construction, repairing, decorating or improving

You must indicate on the certificate if the agricultural employee housing is being built on agricultural land and, if so, provide the parcel number.
This exemption does not apply to housing constructed for farmers, farm family members, or persons owning stock or shares in the farm.

REFERENCES
RCW 82.08.02745
WAC 458-20-262
Special Notice – Sales and Use Tax Exemption for Farm Worker Housing
Special Notice – Farm Worker Drinking Water


Nonresident Farmers

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions (Issued by DOR)

For purchases of

  • Farm machinery, implements
  • Parts for farm machinery and implements
  • Labor and services for repairing farm machinery and implements

The buyer must immediately transport
the equipment outside the state. The seller must examine and record buyer's proof of out of state residency.

REFERENCES
RCW 82.08.0268
WAC 458-20-239


Chicken Farming

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions (Issued by DOR)

For purchases of

  • Propane or natural gas used to heat chicken structures;
  • Bedding Materials used to accumulate and facilitate the removal of chicken manure
  • Poultry used in the production or sale of poultry products

REFERENCES
RCW 82.08.910
RCW 82.08.920
WAC 458-20-210


Livestock for Breeding Purposes/ Cattle and dairy cows used to produce an agricultural product

Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Livestock registered in a nationally recognized breed association purchased for breeding purpose;

You must apply to the Department for a reseller permit.

REFERENCES
RCW 82.08.0259
WAC 458-20-210
RCW 16.36.005


Livestock

Nutrient Management Equipment & Facilities

Retail Sales Tax Exemption Certificate for Livestock Nutrient Management Equipment and Facilities (Issued by DOR)

For purchases of

  • Qualifying livestock nutrient management equipment
  • Repair and replacement parts for qualifying livestock nutrient management equipment
  • Labor and services for installing, repairing, cleaning, altering, or improving livestock nutrient management equipment
  • Labor and services for repairing, cleaning, altering, or improving qualifying livestock nutrient management facilities
  • Tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities during the repairing, cleaning, altering or improving of these facilities

If you have a livestock nutrient management plan, you must apply to the Department for this exemption document.

REFERENCES
RCW 82.08.890
Special Notice – Livestock Nutrient Management Equipment Sales Tax Exemption Reinstated


Diesel, Biodiesel or Aircraft Fuel

used by a farmer or horticultural service provider for farmers

Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions

For purchases of

  • Diesel
  • Biodiesel
  • Aviation fuel

The exemption does not apply to fuel used to heat space for human habitation, water for human consumption, or transportation on public road.

REFERENCES
RCW 82.08.865
Special Notice – Farm Fuel Users – Sales and Use Tax Exemption Update


If you use the Streamlined Sales and Use Tax Agreement Certificate of Exemption

  • To document a farm-related exemption, you must complete the form and identify the reason for the exemption claimed.
  • If you are claiming the Farm Machinery and Equipment Replacement Parts Exemption or the Livestock Nutrient Management Equipment and Facilities Exemption you must enter the number from the certificate issued to you by the Department on line H of Section 5. The number is located on the certificate issued by the Department.
  • To claim a resale exemption for wholesale purchases, you must provide your reseller permit number (if buyer is required to be registered with the Department of Revenue).

Notice to Sellers: The exemptions on this matrix are for sales tax only; business and occupation (B&O) tax still applies.

For more information about exemptions for the agricultural industry, go to http://dor.wa.gov/farmers.

The information contained in this document is current as of October, 1, 2013 and provides general information about the application of agricultural exemptions. It does not cover every requirement or limitation associated with the exemptions identified, nor does it alter or supersede any administrative regulations or rulings issued by the Department. If you have questions, please contact the Department at (800) 647-7706.


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