The following discussion provides the tax reporting responsibilities of those
selling goods to farmers.
Retail Sales
Sales or rentals of the following items to farmers are taxable as retail sales.
Sellers must collect sales tax on these sales, unless specifically exempt by law.
(For more information, see
sales
tax exemptions.) In addition, retailing B&O tax applies:
- Machinery
- Combines
- Irrigation systems
- Vehicles
- Parts
- Tools
- Cleaning materials
- Fuel used in off-road vehicles (e.g., tractors) and lubricants
Wholesale Sales (sales tax does not apply)
Sales of the following items to farmers for the purpose of producing for sale
any agricultural product are taxable as wholesale sales (sales tax does not
apply):
- Feed
- Seed
- Seedlings
- Fertilizer
- Agents for enhanced pollination (including insects such as bees)
- Spray materials
Sales of the following items to farmers are also wholesale sales:
- Chemical sprays or washes sold to farmers or other persons for post-harvest
treatment of fruit for the prevention of scald, fungus, mold, or decay.
- Containers, packaging, and wrappers that are sold by the farmer along
with the agricultural product to be contained therein. Some examples include
grain sacks, twine used in binding such sacks, wire used for binding bales
of hay, fruit or vegetable wrappers, and cardboard boxes for fruits and vegetables.
However, sales of packing materials and containers to a farmer who will use
the items as a consumer are retail sales. Thus, sales of binder twine to a
farmer for binding bales of hay that will be used to feed the farmer's livestock
are retail sales.
The seller must document wholesale sales with a
resale
certificate (pdf) completed by the farmer. Farmers who are not required to be registered
with the Department of Revenue may omit the tax registration number on the
resale
certificate (pdf). A resale certificate is valid for up to four years.
References: WAC
458-20-102,
458-20-115.