wa-law.org > bill > 2025-26 > SB 6283 > Original Bill

SB 6283 - Farm machinery sales tax

Source

Section 1

  1. The legislature finds that agriculture is a vital component of society and that Washington state agriculture has many problems that are increasing in severity. The legislature further finds that the country is relying on fewer and larger farms that are hundreds of miles away from many population centers. The legislature further finds that the United States department of agriculture's national agricultural statistics service indicates that the number of farms in Washington state has been in steady decline.

  2. The legislature intends to increase the competitiveness and financial stability of agricultural producers located in the state of Washington by providing these agricultural producers a sales and use tax exemption that will reduce the cost of farm equipment used for crop and livestock production.

Section 2

  1. Subject to the conditions and requirements in this section, the tax levied by RCW 82.08.020 does not apply to the sale of qualifying farm equipment to an eligible farmer.

  2. The exemption authorized under this section is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. A buyer claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. Instead of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement. The seller must retain a copy of the certificate or the data elements for the seller's files.

  3. An eligible farmer may not claim the exemption under this section and section 3 of this act more than once, in total, each calendar year.

  4. To qualify for the exemption under this section and section 3 of this act, either the gross sales or harvested value, or both, of agricultural products and bee pollination services of the eligible farmer in combination with all affiliates of the eligible farmer may not exceed the farm income threshold.

  5. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

    1. "Affiliate" has the same meaning as provided in RCW 82.04.299.

    2. "Agricultural products" and "farmer" have the same meanings as provided in RCW 82.04.213.

    3. "Eligible farmer," "harvested value," "qualifying farm machinery and equipment," and "tax year" have the same meanings as provided in RCW 82.08.855.

    4. "Farm equipment" includes, but is not limited to, tractors, trailers, combines, tillage implements, balers, and other equipment, including attachments and accessories that are used in the planting, cultivating, irrigation, harvesting, and marketing of agricultural, horticultural, or livestock products, but does not include motor vehicles, as defined in RCW 46.70.011, designed or intended for use upon public roadways or motorcycles.

    5. [Empty]

      1. "Farm income threshold" means $2,000,000 in either gross sales or harvested value, or both, of agricultural products and bee pollination services in the preceding tax year.

      2. By December 2031, the department must adjust the farm income threshold by one plus the percentage by which the most current consumer price index available on December 1, 2031, exceeds the consumer price index for the prior 60-month period, and rounding the result to the nearest $1,000. The department must publish the adjusted farm income threshold on its public website by December 31st. The adjusted farm income threshold calculated under this subsection (5)(e)(ii) applies to purchases made on or after January 1, 2032.

  6. This section expires October 1, 2036.

Section 3

  1. The tax levied by RCW 82.12.020 does not apply to the use of qualifying farm equipment by an eligible farmer.

  2. The conditions, requirements, and definitions in section 2 of this act apply to this section.

  3. This section expires October 1, 2036.

Section 4

  1. This section is the tax preference performance statement for the tax preferences contained in sections 2 and 3, chapter . . ., Laws of 2026 (sections 2 and 3 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.

  2. The legislature categorizes the tax preferences in sections 2 and 3 of this act as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).

Section 5

This act applies to sales or uses that occur on or after October 1, 2026.

Section 6

This act takes effect October 1, 2026.

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