Action required by Washington growers on tax proposal

Farm and Ranch March 5, 2010 A provision in Senate Bill 6873 would eliminate an existing sales tax exemption on fertilizer and crop protection chemicals for Washington farmers unless they are registered as organic products. Chris Voigt, Executive Director of the Washington State Potato Commission, says the increased costs of such a proposal are of great concern.

Voigt: “Doing the math for potatoes it will be between ten and 12-thousand dollars per circle. This is an outright tax on food. I think a vote for this tax measure is a vote against environmental stewardship. A vote against local foods. A vote against open space, against wildlife habitat and local jobs. This is bad for agriculture.”

Voigt says growers need to act.

Voigt: “We are communicating with the other ag groups. We are activating our growers. The legislature needs to know that this is going to make us uncompetitive. It is just going to push acres and jobs to Oregon, Idaho and even Canada. So, if we want agriculture in Washington state we have to vote against this measure.”

The Potato Commission says elimination of the exemption would be a tax on inputs, not the final product. It points out that Boeing doesn’t pay sales tax on aluminum or other inputs and pesticides and fertilizers should be treated the same.

That’s the Northwest Farm and Ranch Report. Brought to you in part by the Washington State Potato Commission. Nutrition today. Good health tomorrow. I’m Bob Hoff on the Northwest Ag Information Network.