BILL REQ. #:  H-1181.3 

Read first time 02/14/2005.   Referred to Committee on Economic Development, Agriculture & Trade.

     AN ACT Relating to a sales and use tax exemption for services and parts for machinery and equipment used by a farmer; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to the sale of replacement parts for, or services rendered in respect to, machinery and equipment used by a farmer, if the machinery and equipment is designed for the purpose of growing, raising, or producing agricultural products.
     (2) The person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.
     (3) For the purposes of this section and section 2 of this act, the following definitions apply:
     (a) "Farmer" and "agricultural products" have the same meaning as provided in RCW 82.04.213.
     (b) "Services" means labor for repairs, maintenance, or the replacement of parts, for machinery and equipment used by a farmer.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of replacement parts for, or services rendered in respect to, machinery and equipment used by a farmer, if the machinery and equipment is designed for the purpose of growing, raising, or producing agricultural products.
     (2) The definitions in section 1 of this act apply to this section.

NEW SECTION.  Sec. 3   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005.