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Washington Livestock Nutrient System Exemption Reinstated, July 2013


 Washington to reinstate sales tax exemption for livestock nutrient management systems.

Washington State used to allow a sales tax exemption for qualifying livestock nutrient management equipment and facilities, pursuant to RCW 82.08.890 and RCW 82.12.890. That exemption was suspended from July 1, 2010 through June 30, 2013. It will be reinstated July 1, 2013.

Eligibility Requirements

A person may qualify for the exemption if they are one of the following:

  • “A licensed dairy whose dairy nutrient management plan has been certified as required by RCW 90.64;
  • An animal feeding operation (AFO) that possesses a state waste disposal permit issued under RCW 90.48; or
  • An AFO possessing both: an approved nutrient management plan; and a sales tax exemption certificate (effective July 1, 2009), issued by the Department of Revenue, for replacement parts and services for farm machinery and equipment.”

Exempt Purchases

The livestock nutrient management sales and use tax exemptions apply to the following purchases:

  • “Qualifying livestock nutrient management equipment;
  • Labor and services rendered in repairing, installing, cleaning, altering, and/or improving qualifying equipment;
  • Tangible personal property that becomes an ingredient or component of qualifying livestock nutrient management facilities in the course of repairing, cleaning, altering or improving such facilities.”

Examples

Qualifying items may include:

  • Aerators;
  • Augers;
  • Loaders;
  • Pitchforks;
  • Poultry liter saver machines; and
  • Wheelbarrows.

The exemption depends in part on how items are used.

The Department of Revenue reminds that in order to claim the sales tax exemption, accurate records must be maintained. Accurate records include purchase invoices, depreciation schedules, farming practices, and logs.

How does your business keep track of exemption certificates?

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.