Washington ag spared most direct hits in legislative revenue packages

Washington Ag Today March 10, 2010 It appears that agriculture has been spared a lot of direct hits in those revenue packages both the House and Senate have adopted. Scott Dahlman of the staff of the Washington State Farm Bureau says there is one direct tax impact.

Dahlman: “They have decided to postpone the exemption that is given to livestock or dairy nutrient management equipment. They had a sales tax exemption that was in there and they have decided to suspend that for a couple of years.”

Dahlman says the proposal that for the first time would have imposed the sales tax on non-organic fertilizers and crop protections chemicals was taken out of the Senate revenue bill.

Dahlman: “And am hopeful that it does not show up again.”

Also not in either chamber’s package is that proposal that would have boosted the Hazardous Substance tax from point-zero-seven percent to two percent. That would have impacted fuel, fertilizer and chemical prices.

Dahlman: “But there are separate bills that could still raise that and that is probably our biggest concern right now.”

The Senate passed bill raises 890 million dollars in revenue, the House passed bill 680 million. Negotiators must work out an agreement and Dahlman says;

Dahlman: “We are watching to make sure that none of those ideas that would directly hit agriculture make their way into it.

It is not certain that lawmakers will reach agreement by the end of the regular session tomorrow.

I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.

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