SENATE BILL REPORT

SB 6177

BYSenators Barr, Hansen, Benitz, Anderson and Bailey

Exempting certain agricultural supplies from sales tax.

Senate Committee on Agriculture

Senate Hearing Date(s):January 14, 1988

Senate Staff:John Stuhlmiller (786-7446)

AS OF JANUARY 14, 1988

BACKGROUND:

With the inception of the federal conservation reserve program, questions were raised regarding the excise tax exemption for seed, fertilizer and spray used on land which will be idle for ten years.  The Department of Revenue has expressed no interest in taxing these products, but suggests that a clarification of the law is necessary.

SUMMARY:

Feed, seed, seedlings, fertilizer and spray materials sold to participants in the federal conservation reserve program administered by the United States Department of Agriculture are exempt from the sales tax.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 4, 1988