4. Replacement parts and repair services for farm machinery and equipment
Purchases by eligible farmers of replacement parts for qualifying farm machinery and equipment are exempt from sales tax and use tax. This exemption was expanded July 22, 2007, to include charges for installing qualifying replacement parts and repair services for qualifying machinery and equipment and to include “farm vehicles” as qualifying machinery and equipment. RCW 82.08.855; RCW 82.12.855
To claim the sales/use tax exemption, you will need to apply to the Department of Revenue. To document your eligibility, you may either:
- Attach certain federal income tax information verifying your gross sales or harvested value of agricultural crops; or
- Sign a declaration that you are an eligible farmer.
The Department will issue an Exemption Certificate for Replacement Parts and Services for Farm Machinery and Equipment,which is good up to five years, to eligible farmers. An “eligible farmer:”
- Grows, raises or produces agricultural products for sale on his/her own land or land to which he/she has a current right of possession AND
- Generates gross sales of or has a harvested value of agricultural products of at least $10,000 in the year prior to applying for the exemption.
The sales/use tax exemption applies to:
- Parts that replace an existing part or that are essential to maintain the working condition of a piece of qualifying farm machinery and equipment;
- Installation of replacement parts for qualifying farm machinery and equipment; and
- Repairs of qualifying farm machinery and equipment.
“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, other farm implements, and (as of July 22, 2007) vehicles licensed with the Department of Licensing (DOL) as farm vehicles (e.g., “farm use,” “farm exempt,” “farm combination”) that are used primarily on farms for transporting machinery, equipment, implements, farm products, supplies, and/or farm labor and are only used on public highways for the purpose of going from one farm to another.
See the Special Notice Repair Parts and/or Services for Farm Machinery and Equipment – Sales and Use Tax Exemptions for additional details.