BILL REQ. #:  S-3952.2 

Read first time 01/16/08.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to the taxation of honey beekeepers; amending RCW 82.04.330, 82.08.865, and 82.12.865; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and providing an effective date.

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

Sec. 1   RCW 82.04.330 and 2001 c 118 s 3 are each amended to read as follows:
     (1)(a) This chapter shall not apply to any farmer ((that)) who:
     (i) Sells any agricultural product at wholesale; or ((to any farmer who))
     (ii) Grows, raises, or produces agricultural products owned by others, such as custom feed operations.
     (b) This chapter shall not apply to amounts derived from the wholesale sale of honey bee products by a person who owns or keeps bee colonies and who does not qualify for an exemption under (a) of this subsection in respect to such sales.
     (c) The exemptions provided in (a) and (b) of this subsection shall not apply to any person selling such products at retail or to any person selling manufactured substances or articles.
     (2) This chapter shall also not apply to any persons who participate in the federal conservation reserve program or its successor administered by the United States department of agriculture with respect to land enrolled in that program.
     (3) The definitions in RCW 82.08.865 apply to this section.

Sec. 2   RCW 82.08.865 and 2007 c 443 s 1 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales ((of diesel fuel, biodiesel fuel, or aircraft fuel,)) of the following fuels to a farm fuel user for ((nonhighway use. This exemption applies to a fuel blend if all of the component fuels of the blend would otherwise be exempt under this subsection if the component fuels were sold as separate products. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. Fuel used for space or water heating for human habitation is not exempt under this section.
     (2))) agricultural purposes:
     (a) Diesel fuel;
     (b) Biodiesel fuel;
     (c) Aircraft fuel; or
     (d) Fuel blends, provided that all of the component fuels of the blend would otherwise be exempt under this subsection if the component fuels were sold as separate products.
     (2) This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
     (3) The definitions in RCW 82.04.213 and this subsection apply to this section.
     (a)(i) "Agricultural purposes" means the performance of activities directly related to the growing, raising, or producing of agricultural products.
     (ii) "Agricultural purposes" does not include:
     (A) Heating space for human habitation or water for human consumption; or
     (B) Transporting individuals, agricultural products, farm machinery or equipment, or other tangible personal property on public roads, except as permitted under RCW 82.38.080(1)(g).
     (b) "Aircraft fuel" is defined as provided in RCW 82.42.010.
     (((b))) (c) "Bee colony" means a natural group of honey bees containing seven thousand or more workers and one or more queens, housed in a man-made hive with movable frames, and operated as a beekeeping unit.
     (d) "Biodiesel fuel" is defined as provided in RCW 19.112.010.
     (((c))) (e) "Diesel fuel" is defined as provided in 26 U.S.C. 4083, as amended or renumbered as of January 1, 2006.
     (((d))) (f) "Eligible apiarist" means a person who owns or keeps one or more bee colonies and who grows, raises, or produces honey bee products for sale at wholesale.
     (g) "Farm fuel user" means:
     (i) A farmer; ((or))
     (ii) An eligible apiarist; or
     (iii) A person who provides horticultural services for farmers, such as soil preparation services, crop cultivation services, and crop harvesting services.
     (h) "Honey bee products" means queen honey bees, packaged honey bees, honey, pollen, bees wax, propolis, or other substances obtained from honey bees. "Honey bee products" does not include manufactured substances or articles.

Sec. 3   RCW 82.12.865 and 2007 c 443 s 2 are each amended to read as follows:
     (1) The provisions of this chapter do not apply with respect to the ((nonhighway use of diesel fuel, biodiesel fuel, or aircraft fuel, by a farm fuel user. This exemption applies to a fuel blend if all of the component fuels of the blend would otherwise be exempt under this subsection if the component fuels were acquired as separate products. Fuel used for space or water heating for human habitation is not exempt under this section)) use of the following fuels by a farm fuel user for agricultural purposes:
     (a) Diesel fuel;
     (b) Biodiesel fuel;
     (c) Aircraft fuel; or
     (d) Fuel blends, provided that all of the component fuels of the blend would otherwise be exempt under this subsection if the component fuels were sold as separate products.
     (2) The definitions in RCW 82.08.865 apply to this section.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.04 RCW to read as follows:
     (1) This chapter does not apply to amounts received by any person for providing bee pollination services to a farmer using a bee colony owned or kept by the person providing the pollination services.
     (2) The definitions in RCW 82.04.213 and 82.08.865 apply to this section.

NEW SECTION.  Sec. 5   A new section is added to chapter 82.08 RCW to read as follows:
     The tax levied by RCW 82.08.020 does not apply to the sale of honey bees to an eligible apiarist, as defined in RCW 82.08.865. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.

NEW SECTION.  Sec. 6   A new section is added to chapter 82.12 RCW to read as follows:
     The provisions of this chapter do not apply in respect to the use of honey bees by an eligible apiarist, as defined in RCW 82.08.865. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.

NEW SECTION.  Sec. 7   This act takes effect July 1, 2008.