SENATE BILL REPORT
HB 1549
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported By Senate Committee On:
Agriculture & Rural Economic Development, March 19, 2007
Ways & Means, March 30, 2007
Title: An act relating to exempting wholesale sales of unprocessed milk for processing from business and occupation tax.
Brief Description: Exempting wholesale sales of bulk unprocessed milk from the business and occupation tax.
Sponsors: Representatives Linville, Kristiansen, Ericksen, McCune and Dunn.
Brief History: Passed House: 3/12/07, 98-0.
Committee Activity: Agriculture & Rural Economic Development: 3/19/07 [DP-WM].
Ways & Means: 3/30/07 [DP].
SENATE COMMITTEE ON AGRICULTURE & RURAL ECONOMIC DEVELOPMENT
Majority Report: Do pass and be referred to Committee on Ways & Means.Signed by Senators Rasmussen, Chair; Hatfield, Vice Chair; Schoesler, Ranking Minority Member; Morton and Shin.
Staff: Sam Thompson (786-7413)
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: Do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Kohl-Welles, Parlette, Rasmussen, Regala, Roach, Rockefeller, Schoesler and Tom.
Staff: Dianne Criswell (786-7433)
Background: The state business & occupation (B&O) tax is levied on the gross receipts of many business activities conducted within the state. The B&O tax rate applying to wholesaling activities is 0.484 percent. Amounts received from wholesale buying and selling of wheat, oats, dry peas, dry beans, lentils, triticale, canola, corn, rye, and barley are exempt from the B&O tax. It is suggested that this exemption be extended to include unprocessed milk.
Summary of Bill: Wholesale sales of unprocessed milk are exempted from the state B&O tax.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony (Agriculture & Rural Economic Development): PRO: This bill makes tax policy regarding wholesale sales of unprocessed milk consistent with tax policy regarding wholesale sales of other agricultural commodities.
Persons Testifying (Agriculture & Rural Economic Development): PRO: Dan Coyne, Northwest Dairy Association (Darigold); Chris Cheney, Washington Dairy Federation.
Staff Summary of Public Testimony (Ways & Means: on companion SB 5641): PRO: Darigold does not wholesale very much unprocessed milk. However, the administrative burden of accounting and reporting income for those sales is great, in comparison to Dairygold's small B&O tax liability from these sales. Extending the same B&O tax exemption to wholesaling of unprocessed milk, as is available for other unprocessed agricultural commodities, would benefit the dairy industry in Washington.
Persons Testifying (Ways & Means): PRO: Sharon Appelt, Darigold.