Farmers and the farming industry

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.

Are you using the correct exemption certificate?

If you use the wrong exemption certificate, your purchase may not be exempt from retail sales tax.

Farmers using the wrong exemption certificates may be liable for the unpaid sales tax.

Purchasing replacement parts exempt from 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 (PDF 456.82KB).

This exemption is limited to charges for:

• Parts that replace an existing part, or 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.

Livestock Nutrient Management Equipment Sales Tax Exemption

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 (PDF 456.82KB) to receive the exemption on qualifying purchases.