Sales tax exemptions

Sales tax exemptions

Honey bees

Purchases of honey bees by an eligible apiarist are not subject to sales tax if the apiarist provides the vendor with a completed Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions.

Feed

Purchases of feed for Honey bees by an eligible apiarist are not subject to sales tax if the apiarist provides the vendor with a completed Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions.

Replacement parts

Eligible apiarists are allowed a retail sales tax exemption on replacement parts and repair services on qualifying machinery and equipment. The definition of farmer for this exemption now includes all of the following:

  • A person who grows, raises or produces honey bee products for sale.
  • A person who provides bee pollination services.
  • Whose annual gross income from such sales is more than ten thousand dollars.

What is a replacement part for qualifying machinery and equipment?

A replacement part is a part that replaces an existing part, or which is essential to maintain the working condition of a piece of qualifying farm machinery and equipment.

A replacement part does not include an item that may be desirable but is not essential for maintaining the working condition of a piece of qualifying farm machinery and equipment, unless the item replaces an existing part. A replacement part does not include paint, fuel, oil, grease, hydraulic fluids, anti-freeze, and similar items except when the seller incorporates these items when installing exempt replacement parts or making repairs to qualifying farm machinery and equipment.

The exemption applies to charges for all of the following:

  • Parts that replace an existing part or which are essential to maintain the working condition of a piece of qualifying farm machinery and equipment.
  • Installing replacement parts for qualifying farm machinery and equipment.
  • Repairing qualifying farm machinery and equipment.

If exempt installation or repair services are provided in a single transaction that also involves the provision of nonexempt services, the exemptions apply to the exempt services as long as the charge for the exempt services are separately itemized and does not exceed the seller's usual and customary charge for such services. The exemptions do not apply if the seller makes a single non-itemized charge for all of the services.

Qualifying farm machinery and equipment means machinery and equipment used primarily by an eligible farmer for growing, raising, or producing agricultural products including farm tractors and other farm implements. As of July 22, 2007, qualifying farm machinery and equipment includes vehicles licensed as farm vehicles.

A “farm tractor” is a motor vehicle that is designed and used primarily as a farm implement for drawing plows, mowing machines, and other farm implements of husbandry. (RCW 46.04.180)

“Farm vehicles” are vehicles used primarily in agricultural pursuits on farms for the purpose of transporting machinery, equipment, implements, farm products, supplies and or farm labor and are only incidentally operated on or moved along public highways for the purpose of going from one farm to another. (RCW 46.04.181) For example, sales tax does not apply to replacement parts for motor vehicles licensed with the Department of Licensing (DOL) specifically for “farm use,” “farm exempt,” or “farm combination,” including farm tractors and farm implements, unless it is specifically excluded from the definition of farm machinery and equipment (as discussed below).

A “farm implement” is machinery or equipment that is manufactured, designed, or reconstructed for agricultural purposes and used primarily by an eligible farmer to grow, raise, or produce agricultural products, but does not include lawn tractors and all-terrain vehicles.

What is not qualifying farm machinery and equipment?

For the purposes of this exemption, qualifying farm machinery and equipment does not include:

  • Vehicles, except for those specifically noted above.
  • Lawn tractors.
  • All-terrain vehicles.
  • Aircraft.
  • Hand tools and hand powered tools.
  • Property with a useful life of less than one year.

For more information on this exemption please see our special notice.