Sales Tax Exemption for Field Burning Equipment Expires Jan. 1
Olympia—Nov. 10, 2010 – A sales and use tax exemption for purchases of certain equipment to reduce field burning expires on Jan. 1, 2011.
Qualified farmers have been able to purchase such equipment without paying tax since 2000, but a 2005 legislative update to the tax exemption included a five-year sunset provision.
In order to qualify for the exemption before it expires, delivery of the equipment must take place prior to January 1, 2011.
The Department of Revenue has begun notifying equipment suppliers and other agricultural businesses and organizations that the sales tax must be collected on all equipment purchases after Dec. 31, 2010.
The Legislature enacted the exemption to encourage alternatives to field burning of cereal grains and field and turf grass grown for seed. To be qualified, a farmer must have more than 50 percent of tillable acres in cereal grains and/or field and turf grass grown for seed in one of 16 qualifying counties.
In 2009, the Joint Legislative Audit and Review Committee (JLARC) concluded that the “transition to reduced air emissions from agricultural burning has occurred,” and recommended that the exemption be allowed to expire. The Citizen Commission for Performance Measurement of Tax Preferences endorsed JLARC’s recommendation.
More information on the exemption, including which counties and equipment qualify, is available at a new Department of Revenue web page for farmers, http://dor.wa.gov/farmers.
The site includes information on renewing farm replacement parts exemption certificates that will expire Dec. 31, and clarification of documentation required to support sales tax exemptions.
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