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Bill > SB5092
WA SB5092
WA SB5092Providing a sales and use tax exemption for qualifying farm machinery and equipment.
summary
Introduced
01/13/2025
01/13/2025
In Committee
01/13/2025
01/13/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT Relating to a sales and use tax exemption for qualifying 2 farm machinery and equipment; adding a new section to chapter 82.08 3 RCW; adding a new section to chapter 82.12 RCW; creating new 4 sections; providing an effective date; and providing expiration 5 dates. 6
AI Summary
This bill provides a sales and use tax exemption for small and medium-sized agricultural producers in Washington state. Specifically, the legislation creates a tax exemption for farm equipment valued at $10,000 or more, which is purchased by farmers with annual gross sales or harvested value of agricultural products and bee pollination services not exceeding $2,000,000. The exemption applies to a wide range of farm equipment, including tractors, trailers, combines, tillage implements, and balers, but excludes motor vehicles designed for public roadways. Farmers can only claim this exemption once per calendar year, and they must provide an exemption certificate to the seller. The legislature's motivation stems from concerns about the declining number of farms in the United States and the potential vulnerabilities in the agricultural supply chain highlighted during the COVID-19 pandemic. The bill aims to support small and medium-sized agricultural producers by reducing their equipment costs. The tax exemption will be in effect from October 1, 2025, and is set to expire on October 1, 2035. Additionally, the joint legislative audit and review committee is required to evaluate the fiscal impact and changes in the number of agricultural producers by January 1, 2034, with the ability to use national agricultural statistics in their assessment.
Committee Categories
Agriculture and Natural Resources
Sponsors (6)
Matt Boehnke (R)*,
Mike Chapman (D),
Perry Dozier (R),
Deborah Krishnadasan (D),
Ron Muzzall (R),
Keith Wagoner (R),
Last Action
Public hearing in the Senate Committee on Agriculture & Natural Resources at 1:30 PM. (on 01/16/2025)
bill text
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://app.leg.wa.gov/billsummary?BillNumber=5092&Year=2025&Initiative=false |
Senate Bill Report | https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bill%20Reports/Senate/5092%20SBR%20ANR%20TA%2025.pdf |
Senate Bill Report (Orig.) | https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bill%20Reports/Senate/5092%20SBA%20ANR%2025.pdf |
BillText | https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Senate%20Bills/5092.pdf |
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