Senate bill would impose B & O tax and more on farmers and ranchers

Washington Ag February 9, 2009 Two Senate Democrats have introduced legislation that would for the first time require Washington farmers and ranchers to pay the business and occupation tax if their gross income is 200-thousand dollars or more. Senate Bill 5911 would also make farm auctions subject to the sales tax. Senator Mark Schoesler of Ritzville, ranking Republican on the Senate Agriculture Committee, calls the two taxes the cruelest proposals imaginable. Schoesler emphasizes the B & O tax is on gross receipts before expenses are accounted for. Schoesler: “A farmer could gross a half a million dollars, have a profit barely adequate to support a family and yet they would pay those taxes on their gross receipts. They might qualify for food stamps and still pay the B & O tax.” And making farm auctions subject to the sales tax? Schoesler: “Now what more way to kick a farmer when they are down than the sad event of a retirement or an unsuccessful operation by imposing taxes that will reduce the amount of money that goes to the sale.” Senate Bill 5911 would also do away with the public utility tax deduction for irrigation. In all Schoesler says the legislation would completely or partially repeal seven deductions or exemptions. He says the key now is whether SB5911 gets a public hearing before the Senate Ways and Means Committee on which Schoesler serves. I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.