SENATE BILL REPORT

HB 1

BYRepresentatives Madsen, Miller, Grimm, Sayan, Vekich, Rasmussen, Padden, Taylor, Jacobsen, Haugen and P. King 

Exempting seedlings and plantation Christmas trees from excise tax.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Deccio, Kreidler, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

Under current law, there are sales and use tax exemptions for seeds, fertilizer, and sprays used in the production of agricultural goods.  Agricultural products are also exempt from the business and occupation taxes.  Christmas tree farmers are specifically excluded from using these exemptions.

SUMMARY:

House Bill 1 would exempt from business and occupation retailing tax and retail sales tax the sale of seedlings, fertilizer, and spray used in the production of "plantation Christmas trees."  "Plantation Christmas trees" are defined in the bill as those trees which are exempt from the state timber excise tax.  "Plantation" trees are grown on land prepared by intensive cultivation and tilling, and used exclusively for Christmas tree production.

Revenue:    The bill has a revenue impact.

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: No one