Many purchases by farmers in Washington are exempt from sales tax. However, the exemptions are based on separate and specific laws; therefore, some of them require different documentation. Below is a brief discussion on which form to use on two of the more common exemptions. For additional information please see our Agricultural Tax Guide.
If you use the wrong exemption certificate, your purchase may not be exempt from retail sales tax.
The Department has recently updated the Farmer’s Tax Exemption Matrix. This document explains which exemption certificate to use for each type of purchase. Please review it before making any purchases.
Farmers using the wrong exemption certificates may be liable for the unpaid sales tax.
If you are an “eligible farmer”, you can purchase replacement parts for farm machinery and equipment, and certain related services, exempt from sales tax. You must provide the seller with a completed Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions.
This exemption is limited to charges for:
For more information please see our Special Notice titled Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions Update
Effective June 12, 2014, businesses that qualify for the sales and use tax exemption on equipment and facilities used in livestock nutrient management no longer need to apply for an exemption certificate from the Department. These businesses must instead provide their vendor with a Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions to receive the exemption on qualifying purchases. See our special notice Change to the Sales Tax Exemption for Livestock Nutrient Management for more information.