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WAC 122 Sales of feed, seed, fertilizer, spray materials, and other tangible personal property for farm use. Repealed September 25, 2003          
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION  
         
WAC: 458-20-122   03/10/1994 Sales of feed, seed, fertilizer, spray materials, and other tangible personal property for farm use.Effective 4/10/94.WAC 122 repealed, incorporated into WAC 210, effective 9/25/03.  
           
         
RCW: 82.04.050   1995 "Sale at retail," "retail sale."  
  82.04.060   1983 "Sale at wholesale," "wholesale sale."  
  82.04.250   1993 Tax on retailers.  
  82.04.270   1994 Tax on wholesalers, distributors.  
  82.04.330   1993 Exemptions--Farmers--Agriculture.  
  82.08.020   1992 Tax imposed--Retail sales--Retail car rental.  
  82.14.030   1989 Sales and use tax authorized--Additional taxes--authorized --Maximum rates.  
           
         
ETA: 99.08.122   07/29/1966 SPRAY MATERIALS USED IN PRODUCING TIMBER AND THE AGRICULTURAL EXEMPTION -This document explains that the retail sales tax applies to the purchase of spray materials used to control weeds and pests in timber areas.This document is no longer needed as the taxability of spray materials is addressed in WAC 458-20-13501. Cancelled by ETA 2003-3s 07/16/2001  
           
         
INDUSTRY GUIDES:   03/01/2004 Agricultural Tax Guide  
           
           
SPECIAL NOTICES:        
Subject Title Reference:        
Agricultural     05/02/2000 Farmworker Drinking Water  
Agricultural     06/09/2000 Tax Incentives to Reduce Agricultural Burning  
Agricultural     08/01/2001 Sales and Use Tax Exemption to Farmers and Veterinarians for Animal Pharmaceuticals  
Agricultural     08/06/2001 The Tax Application for Tree and/or Stump Removal from Existing Orchards  
Agricultural     03/12/2002 Dairy Nutrient Management Sales/Use Tax Exemption & Dairy Farmer Sample Application  
Agricultural     11/13/2002 Pesticides and the Hazardous Substance Tax  
Agricultural     06/12/2002 Update--Sales and Use Tax Exemption for Animal Pharmaceuticals Sold to Farmers or Veterinarians  
Agricultural     12/06/2002 Tax on Equipment Used to Reduce Agricultural Burning  
Agricultural     06/29/2005 Tax Incentives to Reduce Agricultural Burning to Change  
Agricultural     03/08/2006 Farm Fuel Users - Sales and Use Tax Exemption  
           
           
         
OTHER:     Farmer's Retail Sales Tax Exemption Certificate  
           
         
DIRECTIVE: 8122.1   10/12/1987 Feed Purchased by Cattle Auction BusinessesCancelled 07/17/02 - Feed Purchased by Cattle Auction Businesses - This directive explains that because of a 1985 law change, custom feedlot operators may purchase feed at wholesale and are exempt from B&O tax irrespective of whether they charge the livestock owner separately for the cost of feed.Chapter 118, Laws of 2001, and Det. 87-266, 4 WTD 007 (1987) provide sufficient guidance to determine the tax consequences of this activity.  
         
           
         
RPM: None        
           
         
WTD: 4 WTD 7 87-266   BUSINESS AND OCCUPATION TAX -- EXEMPTION -- AGRICULTURAL -- CUSTOM FEEDERS.Persons engaged in business of raising livestock, owned by others, i.e. "custom feeding," are exempt from B&O tax irrespective of whether they charge the livestock owner separately for the cost of feed separately for the cost of feed.  
  5 WTD 327 88-188   SALES/USE TAX -- FERTILIZER EXEMPTION -- HOPS -- COIR YARN.Coir yarn is a rope-like material used by hops farmers in the above ground level growth of hop vines.The fact that after such use the yarn is plowed into the ground with the harvested vines does not make it exempt of sales/use tax as a fertilizer.  
  7 WTD 349 89-349   AGRICULTURAL EXEMPTION -- FEED --USE TAX.The exemption provided in Rule 122 applies only to feed purchased or used in the production of agricultural products for wholesale sale.It does not apply to feed purchased or used for boarding horses, and it does not apply to feed purchased for horses held for retail sales.  
  10 WTD 336 90-386   USE TAX EXEMPTION -- COMMERCIAL FERTILIZERS.The legislatureintended to exempt from sales/use tax all recognized commercial fertilizers which are purchased and first used as such by agricultural producers covered by RCW 82.04.330.Rule 122 is construed to exempt fertilizers applied by spraying plants directly as well as those fertilizers added to the soil.  
  10 WTD 336 90-386   USE TAX -- INTERVENING USE.When taxpayer first uses a substance for purposes other than one which is tax exempt, such use is intervening use and negates the exemption.The use tax test is first use, not primary use. An exemption in a tax statute will be strictly construed in favor of taxation.Accord: Det. 87-298, 4 WTD 87 (1987), Budget Rent-a-Car vs. Dept. of Rev., 81 Wn 2d 171, 174 (1972).  
  10 WTD 336 90-386   USE TAX EXEMPTION -- CHEMICAL SPRAYS OR WASH:Flotation salts such as pear float/sodium silicate prevent fungal decay of harvested fruit and thus are exempt from sales/use tax for persons who purchase them for post-harvest treatment of fruit.Det. No. 90-386, 10 WTD 336 (1990).  
  10 WTD 336 90-386   This determination as been overruled in part by Det. No. 91-305S, 11 WTD 281 (1991).  
  11 WTD 281 91-305S   HYDRATED LIME -- POST-HARVEST TREATMENT OF FRUIT -- SALES AND USE TAXES -- EXEMPTION.The purchase of hydrated lime when first used in cold storage to prevent carbon dioxide injury to fruit, including scald or decay, is exempt from sales and use taxes as a post-harvest treatment of the fruit. (This determination overrules the decision in Det. 90-386, 10 WTD 336 (1990), that the purchase of hydrated lime was subject to retail sales tax.)  
  12 WTD 191 92-155   FERTILIZER -- SALES TAX -- EXEMPTION.The sale of sawdust does not qualify for the sales tax exemption for fertilizers.  
  12 WTD 191 92-155   FERTILIZER -- SALES TAX -- USE TAX -- INTERVENING USE.When taxpayer sells its customers a substance for purposes other than one which is tax exempt, such use is intervening use and negates the exemption.The test is first use, not primary or subsequent use.An exemption in a tax statute will be strictly construed in favor of taxation.Accord: Det. No. 90-386, 10 WTD 336 (1990); Det. No. 87-298, 4 WTD 87 (1987); Budget Rent-a-Car vs. Dept. of Rev., 81 Wn 2d 171, 174 (1972).  
  13 WTD 369 93-240   RETAIL SALES TAX -- RESALE CERTIFICATE -- FARMER -- FEEDLOT.A feedlot which fattens its own cattle for longer than sixty days before selling them at wholesale will be treated as a farmer and may give its vendors resale certificates for its purchases of feed.  
  19 WTD 971 00-046   RETAIL SALES TAX - LIQUID NITROGEN - CHERRIES -ASPARAGUS - DECAY.Sales of liquid nitrogen applied directly on post-harvest cherries to prevent decay are not retail sales.Sales of liquid nitrogen applied in asimilar manner to asparagus are retail sales.  
  20 WTD 84 00-106   WHOLESALING B&O TAX -- SALES OF SPRAY TO FARMERS -- FARMER DEFINED.Sales of spray materials to farmers for the purpose of producing for sale any agricultural product are classified as wholesale sales.However, if a person uses agricultural products as ingredients in a manufacturing process, the person does not qualify as a farmer.A person will qualify as a farmer, provided:1) the person grows or produces an agricultural product on the person's own land or land in which the person has a present right of possession; and 2) the person does not use such products as ingredients in a manufacturing process (however packing such products is not considered to be manufacturing).  
  20 WTD 84 00-106   SALES OF CHEMICAL SPRAYS FOR THE POSTHARVEST TREATMENT OF FRUIT - SALES TAX - USE TAX - DEDUCTION --POTATOES.The exception from the definition of a retail sale set forth in RCW 82.04.050(3) applies to sales of spray for fruit and not vegetablesAs such, it does not apply to sales of spray for potatoes.  
  20 WTD 84 00-106   SALES TAX - USE TAX - DEDUCTION --CHEMICAL USED IN PROCESSING - SPRAY MATERIALS.Even if spray materials qualified as a "chemical" for purposes of the exemption, in this case their use appears to occur prior to any processing taking place because the potatoes are sprayed at the time of harvest, when they are put into storage.  
  20 WTD 84 00-106   SALES TAX - USE TAX -DEDUCTION -- SPRAY MATERIALS - PACKING MATERIALS.The definition of "packing materials" does not encompass spray materials.The definition of packing materials is limited to "materials in which tangible personal property may be contained or protected within a container, for transportation or delivery to a purchaser."Because the spray materials do not contain or protect the potatoes, nor are they used for transportation or delivery, spray materials do not qualify for the deduction  
  20 WTD 272 00-187   RETAIL SALES TAX - M&E TAX EXEMPTION - CONDITIONING OF SEED.An agricultural business is not entitled to a refund of sales tax it paid for the purchase, installation, and repair of machinery and equipment it uses to condition seed for planting because conditioning of seed for use in planting is not a manufacturing activity.  
  22 WTD 78 02-0170E   RETAIL SALES TAX - EXEMPTION - MACHINERY - FIELD BURNING - COMBINES - MAJORITY USE TEST.To satisfy the majority use test for field burning equipment, a taxpayer must prove that a combine is used more time in a qualifying use (i.e., to reduce field burning) than in a nonqualifying use (i.e., to harvest wheat).Where a combine simultaneously performs different functions, one of which is arguably an exempt function (reducing field burning through processing straw) and one of which is not exempt, it is not used to reduce field burning more than half of the time and does not qualify for the retail sales tax exemption under RCW 82.08.840.  
           
         
OTHER: