Sales to farmers

The following discussion provides tax reporting responsibilities to businesses selling goods to farmers.

Retail sales

Sales or rentals of items, including those listed below, to farmers are subject to B&O tax under the retailing classification. Sellers must collect sales tax unless purchases are specifically exempt by law. (For more information, see sales tax exemptions.)

  • Machinery
  • Combines
  • Irrigation systems
  • Vehicles
  • Parts
  • Tools
  • Cleaning materials

Wholesale sales

Sales of the following items to farmers, for the purpose of producing for sale any agricultural product, are subject to B&O tax under the wholesaling classification:

  • Feed
  • Seed
  • Seedlings
  • Fertilizer
  • Agents for enhanced pollination (including insects such as bees)
  • Spray materials
  • 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.

The seller must document wholesale sales by retaining a copy of the buyer's reseller permit or a Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions.

References: WAC 458-20-102 & WAC 458-20-115.