Sales & Use Tax Exemption for Some Farmers in Washington State
A new law will allow some farmers exemption from sales and use taxes in Washington state
Most farmers in the US are not subject to paying sales or use tax when they purchase farm equipment. However, Washington State historically has required farmers to pay these taxes for several years.
Starting October 1, 2025, certain farmers will be exempt from owing these taxes. This exemption only applies to farmers whose gross sales from agricultural products is less than $2 million. Many farmers will have gross sales greater than this amount and still qualify since other income such as governmental payments, crop insurance proceeds, etc. will not be included as part of this calculation (at least based on our assumption - rules have not yet been provided).
Here are the key provisions:
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