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Q:  Can an eligible farmer get a refund for sales tax paid on purchases of qualifying replacement parts for farm equipment and machinery?

A: 

Yes, under certain circumstances. An eligible farmer who paid sales tax at the time of purchase and possessed a current exemption certificate issued by the Department at the time of purchase and later determines that sales tax was not applicable on the replacement part is eligible for a refund of the tax.  The eligible farmer must first ask the seller to refund the amount of sales tax previously paid. This is because the seller:  

  • Knows the customer;
  • Has records to indicate if sales tax was paid;
  • Is aware of any disputes concerning the purchase; and
  • May be aware of circumstances as to why a refund is appropriate (i.e., invoice detail for replacement part)

 

The Department of Revenue will not make refunds directly to consumers unless the consumer presents acceptable proof of sales tax payment and:

  • The seller is no longer in business;
  • The seller has moved and the consumer can not locate the seller;
  • The seller is financially unable to make the refund; or
  • The consumer has attempted to get a refund from the seller and can document that the seller refuses to refund the sales tax

Please note: A farmer must have a current exemption certificate issued by the Department to make qualified sales tax exempt purchases and to qualify for a refund.  A refund is available to the farmer only if the purchase was made on or between the effective and expiration dates identified on the certificate.

For further information on refunds, please see Washington Administrative Code (WAC) 458-20-229

More information
Special Notice: Replacements Parts for Farm Machinery and Equipment - Sales and Use Tax Exemption (pdf)
Washington Administrative Code (WAC) 458-20-229
Agriculture guide
Related questions & answers
Is there a deadline to apply for the replacement parts for farm machinery and equipment exemption certificate?
Does the replacement part have to have a useful life of more than one year to qualify for the exemption for farm machinery and equipment?
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