This bill amends existing Washington state law to provide a sales and use tax exemption for qualifying farm machinery and equipment. Specifically, it adds provisions that exempt the sale of qualifying farm machinery and equipment, replacement parts, and related labor and services from sales tax when sold to eligible farmers. The bill outlines the conditions under which these exemptions apply, including the requirement for eligible farmers to maintain records and obtain exemption certificates. Additionally, it establishes that eligible farmers must pay the tax upfront and can later apply for a remittance of the tax paid on qualifying purchases.

The bill also clarifies the definitions of "eligible farmer" and "qualifying farm machinery and equipment," and it specifies that the exemptions will not apply to certain items such as vehicles (other than farm tractors), aircraft, and hand tools. Furthermore, it introduces new sections that state the act will not be subject to certain existing laws and will take effect for sales or uses occurring on or after October 1, 2025. Overall, the legislation aims to support the agricultural sector by reducing the tax burden on farmers for essential equipment and services.

Statutes affected:
Original Bill: 82.08.855, 82.12.855