BILL REQ. #:  S-5319.1 

READ FIRST TIME 02/08/08.   

     AN ACT Relating to a sales and use tax exemption for farm machinery and equipment sold at an auction; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

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 an auction sale of farm machinery and equipment made by or through an auctioneer if the auctioneer took possession of the machinery and equipment from an eligible farmer and the farmer provided the auctioneer with an exemption certificate under RCW 82.08.855. An auctioneer must keep records necessary for the department to verify eligibility under this section.
     (2) The definitions in this subsection apply to this section.
     (a) "Agricultural products" and "eligible farmer" have the same meanings as provided in RCW 82.08.855.
     (b) "Farm machinery and equipment" means machinery and equipment used primarily for growing, raising, or producing agricultural products.

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 to the use of farm machinery and equipment acquired at an auction sale held or conducted by an auctioneer if the auctioneer took possession of the machinery and equipment from an eligible farmer and the farmer provided the auctioneer with an exemption certificate under RCW 82.08.855.
     (2) The definitions in section 1 of this act apply to this section.