BILL REQ. #:  S-0244.1 

Read first time 01/10/11.   Referred to Committee on Transportation.

     AN ACT Relating to clarifying the definition of "farm vehicle" to encourage similar recognition in federal tax law; amending RCW 46.04.181; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature recognizes that, for purposes of federal tax law, dyed, off-road diesel fuel is generally not allowed for use in vehicles traveling on public highways. However, the legislature further recognizes that federal internal revenue service guidelines include certain nontaxable uses of dyed, off-road diesel fuel, including if the fuel is used on a farm for farming purposes or if the fuel is used in vehicles designed for off-highway transportation. The legislature was recently informed that federal revenue agents have cited Washington state farmers for the unlawful use of dyed, off-road diesel fuel in their hay harvesting vehicles known as bale wagons or harrow beds. The legislature finds that these citations are clearly erroneous and contrary to the permissible, nontaxable uses of the fuel as the vehicles are designed strictly for use on farms to transport bales of hay from the field to a farmer's haystack. Therefore, the legislature intends to clarify that Washington law defines farm vehicles to include bale wagons or harrow beds in order to encourage the internal revenue service to also define qualified farm vehicles as such for federal tax purposes.

Sec. 2   RCW 46.04.181 and 1967 c 202 s 1 are each amended to read as follows:
     "Farm vehicle" means any vehicle other than a farm tractor or farm implement, which is designed and/or used primarily in agricultural pursuits on farms for the purpose of transporting machinery, equipment, implements, farm products, supplies and/or farm labor thereon, including a bale wagon or harrow bed, and is only incidentally operated on or moved along public highways for the purpose of going from one farm to another.