FINAL BILL REPORT

HB 1

                                   C 23 L 87

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

SYNOPSIS AS ENACTED

BACKGROUND:

Sales and use tax exemptions exist for seeds, fertilizer and sprays used in the production of agricultural goods.  Agricultural goods are also exempt from business and occupation taxes.  Christmas tree farms are specifically excluded from both of these exemptions.

SUMMARY:

A sales tax exemption is provided for sales of seedlings, fertilizer and spray used in the production of "plantation Christmas trees."  In addition, a business and occupation tax exemption is granted for income received from the production of such trees.  "Plantation Christmas trees" are defined 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.

VOTES ON FINAL PASSAGE:

      House 87   6

      Senate    48     0

EFFECTIVE:April 6, 1987