The bill aims to extend an existing hazardous substance tax exemption for certain agricultural crop protection products that are temporarily warehoused in Washington but not used, manufactured, packaged, or sold within the state. Specifically, it amends RCW 82.21.040 to clarify that until January 1, 2038, any possession of hazardous substances defined as agricultural crop protection products, when solely for use by farmers or certified applicators and warehoused in the state, will be exempt from the hazardous substance tax. This exemption is intended to incentivize the storage of these products in Washington, thereby enhancing the competitiveness of the agricultural industry in the region.

Additionally, the bill includes a new provision that categorizes this tax preference as one aimed at improving industry competitiveness, as indicated in RCW 82.32.808(2)(b). The legislature recognizes the importance of the agricultural sector to Washington's economy and seeks to prevent the relocation of warehousing activities to out-of-state distribution centers due to the state's tax burden. The bill also outlines a review process to assess the impact of this tax exemption on revenue, with the intention to extend the exemption if a revenue increase is observed.

Statutes affected:
Original bill: 82.21.040
Bill as passed Legislature: 82.21.040
Session law: 82.21.040