Ag. crop products/tax ex.

AN ACT Relating to extending an existing hazardous substance tax 1
exemption for certain agricultural crop protection products that are 2
temporarily warehoused but not otherwise used, manufactured, 3
packaged, or sold in the state of Washington; amending RCW 82.21.040; 4
and amending 2024 c 241 s 2 (uncodified). 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 82.21.040 and 2024 c 241 s 1 are each amended to 7
read as follows: 8
The following are exempt from the tax imposed in this chapter:9
(1) Any successive possession of a previously taxed hazardous 10
substance. If tax due under this chapter has not been paid with 11
respect to a hazardous substance, the department may collect the tax 12
from any person who has had possession of the hazardous substance. If 13
the tax is paid by any person other than the first person having 14
taxable possession of a hazardous substance, the amount of tax paid 15
shall constitute a debt owed by the first person having taxable 16
possession to the person who paid the tax. 17
(2) Any possession of a hazardous substance by a natural person 18
under circumstances where the substance is used, or is to be used, 19
for a personal or domestic purpose (and not for any business purpose) 20
S-4024.1
SENATE BILL 6244
State of Washington 69th Legislature 2026 Regular Session
By Senators Torres and Dozier
Read first time 01/20/26. Referred to Committee on Ways & Means.
p. 1 SB 6244
by that person or a relative of, or person residing in the same 1
dwelling as, that person. 2
(3) Any possession of a hazardous substance amount which is 3
determined as minimal by the department of ecology and which is 4
possessed by a retailer for the purpose of making sales to ultimate 5
consumers. This exemption does not apply to pesticide or petroleum 6
products. 7
(4) Any possession of alumina or natural gas. 8
(5)(a) Until January 1, ((2028)) 2038, any possession of a 9
hazardous substance as defined in RCW 82.21.020(1)(c) that is solely 10
for use by a farmer or certified applicator as an agricultural crop 11
protection product and warehoused in this state or transported to or 12
from this state, provided that the person possessing the substance 13
does not otherwise use, manufacture, package for sale, or sell the 14
substance in this state. 15
(b) The definitions in this subsection apply throughout this 16
section unless the context clearly requires otherwise.17
(i) "Agricultural crop protection product" means a chemical 18
regulated under the federal insecticide, fungicide, and rodenticide 19
act, 7 U.S.C. Sec. 136 as amended as of September 1, 2015, when used 20
to prevent, destroy, repel, mitigate, or control predators, diseases, 21
weeds, or other pests. 22
(ii) "Certified applicator" has the same meaning as provided in 23
RCW 17.21.020. 24
(iii) "Farmer" has the same meaning as in RCW 82.04.213.25
(iv) "Manufacturing" includes mixing or combining agricultural 26
crop protection products with other chemicals or other agricultural 27
crop protection products. 28
(v) "Package for sale" includes transferring agricultural crop 29
protection products from one container to another, including the 30
transfer of fumigants and other liquid or gaseous chemicals from one 31
tank to another. 32
(vi) "Use" has the same meaning as in RCW 82.12.010.33
(6) Persons or activities which the state is prohibited from 34
taxing under the United States Constitution. 35
Sec. 2. 2024 c 241 s 2 (uncodified) is amended to read as 36
follows: 37
(1) The legislature categorizes the tax preference in section 38
1902, chapter 6, Laws of 2015 3rd sp.s. ((and)), section 1, chapter 39
p. 2 SB 6244
241, Laws of 2024 , and section 1, chapter . . ., Laws of 2026 1
(section 1 of this act) as one intended to improve industry 2
competitiveness, as indicated in RCW 82.32.808(2)(b).3
(2) The legislature's specific public policy objective is to 4
clarify an existing exemption from the hazardous substance tax for 5
agricultural crop protection products to incentivize storing products 6
in Washington state as they are engaged in interstate commerce. The 7
legislature finds that the agricultural industry is a vital component 8
of Washington's economy, providing thousands of jobs throughout the 9
state. The legislature further finds that Washington state is the 10
ideal location for distribution centers for agricultural crop 11
protection products because Washington is an efficient transportation 12
hub for Pacific Northwest farmers, and encourages crop protection 13
products to be managed in the most protective facilities, and 14
transported using the most sound environmental means. However, 15
products being warehoused in the state are diminishing because 16
agricultural crop protection products are being redirected to out-of-17
state distribution centers as a direct result of Washington's tax 18
burden. Relocation of this economic activity is detrimental to 19
Washington's economy through the direct loss of jobs and hazardous 20
substance tax revenue, thereby negatively impacting the supply chain 21
for Washington farmers, thereby causing increased transportation 22
usage and risk of spillage, thereby failing to encourage the most 23
environmentally protective measures. Therefore, it is the intent of 24
the legislature to encourage the regional competitiveness of 25
agricultural distribution by clarifying an exemption from the 26
hazardous substance tax for agricultural crop protection products 27
that are manufactured out-of-state, warehoused or transported into 28
the state, but ultimately shipped and sold out of Washington state.29
(3) If a review finds an average increase in revenue of the 30
hazardous substance tax, then the legislature intends to extend the 31
expiration date of the tax preference. (4) In order to obtain the data 32
necessary to perform the review in subsection (3) of this section, 33
the joint legislative audit and review committee may refer to data 34
available from the department of revenue. 35
--- END ---
p. 3 SB 6244