Farm machinery sales tax

AN ACT Relating to a sales and use tax exemption for qualifying 1
farm machinery and equipment; adding a new section to chapter 82.08 2
RCW; adding a new section to chapter 82.12 RCW; creating new 3
sections; providing an effective date; and providing expiration 4
dates. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. (1) The legislature finds that agriculture 7
is a vital component of society and that Washington state agriculture 8
has many problems that are increasing in severity. The legislature 9
further finds that the country is relying on fewer and larger farms 10
that are hundreds of miles away from many population centers. The 11
legislature further finds that the United States department of 12
agriculture's national agricultural statistics service indicates that 13
the number of farms in Washington state has been in steady decline.14
(2) The legislature intends to increase the competitiveness and 15
financial stability of agricultural producers located in the state of 16
Washington by providing these agricultural producers a sales and use 17
tax exemption that will reduce the cost of farm equipment used for 18
crop and livestock production. 19
S-3941.1
SENATE BILL 6283
State of Washington 69th Legislature 2026 Regular Session
By Senators Boehnke, Dozier, and Wagoner
Read first time 01/22/26. Referred to Committee on Ways & Means.
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NEW SECTION. Sec. 2. A new section is added to chapter 82.08 1
RCW to read as follows: 2
(1) Subject to the conditions and requirements in this section, 3
the tax levied by RCW 82.08.020 does not apply to the sale of 4
qualifying farm equipment to an eligible farmer. 5
(2) The exemption authorized under this section is available only 6
when the buyer provides the seller with an exemption certificate in a 7
form and manner prescribed by the department. A buyer claiming an 8
exemption under this section must keep records necessary for the 9
department to verify eligibility under this section. Instead of an 10
exemption certificate, a seller may capture the relevant data 11
elements as allowed under the streamlined sales and use tax 12
agreement. The seller must retain a copy of the certificate or the 13
data elements for the seller's files. 14
(3) An eligible farmer may not claim the exemption under this 15
section and section 3 of this act more than once, in total, each 16
calendar year. 17
(4) To qualify for the exemption under this section and section 3 18
of this act, either the gross sales or harvested value, or both, of 19
agricultural products and bee pollination services of the eligible 20
farmer in combination with all affiliates of the eligible farmer may 21
not exceed the farm income threshold. 22
(5) The definitions in this subsection apply throughout this 23
section unless the context clearly requires otherwise.24
(a) "Affiliate" has the same meaning as provided in RCW 25
82.04.299. 26
(b) "Agricultural products" and "farmer" have the same meanings 27
as provided in RCW 82.04.213. 28
(c) "Eligible farmer," "harvested value," "qualifying farm 29
machinery and equipment," and "tax year" have the same meanings as 30
provided in RCW 82.08.855. 31
(d) "Farm equipment" includes, but is not limited to, tractors, 32
trailers, combines, tillage implements, balers, and other equipment, 33
including attachments and accessories that are used in the planting, 34
cultivating, irrigation, harvesting, and marketing of agricultural, 35
horticultural, or livestock products, but does not include motor 36
vehicles, as defined in RCW 46.70.011, designed or intended for use 37
upon public roadways or motorcycles. 38
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(e)(i) "Farm income threshold" means $2,000,000 in either gross 1
sales or harvested value, or both, of agricultural products and bee 2
pollination services in the preceding tax year. 3
(ii) By December 2031, the department must adjust the farm income 4
threshold by one plus the percentage by which the most current 5
consumer price index available on December 1, 2031, exceeds the 6
consumer price index for the prior 60-month period, and rounding the 7
result to the nearest $1,000. The department must publish the 8
adjusted farm income threshold on its public website by December 9
31st. The adjusted farm income threshold calculated under this 10
subsection (5)(e)(ii) applies to purchases made on or after January 11
1, 2032. 12
(6) This section expires October 1, 2036. 13
NEW SECTION. Sec. 3. A new section is added to chapter 82.12 14
RCW to read as follows: 15
(1) The tax levied by RCW 82.12.020 does not apply to the use of 16
qualifying farm equipment by an eligible farmer. 17
(2) The conditions, requirements, and definitions in section 2 of 18
this act apply to this section. 19
(3) This section expires October 1, 2036. 20
NEW SECTION. Sec. 4. (1) This section is the tax preference 21
performance statement for the tax preferences contained in sections 2 22
and 3, chapter . . ., Laws of 2026 (sections 2 and 3 of this act). 23
This performance statement is only intended to be used for subsequent 24
evaluation of the tax preferences. It is not intended to create a 25
private right of action by any party or be used to determine 26
eligibility for preferential tax treatment.27
(2) The legislature categorizes the tax preferences in sections 2 28
and 3 of this act as one intended to provide tax relief for certain 29
businesses or individuals, as indicated in RCW 82.32.808(2)(e).30
NEW SECTION. Sec. 5. This act applies to sales or uses that 31
occur on or after October 1, 2026.32
NEW SECTION. Sec. 6. This act takes effect October 1, 2026.33
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