05/18/07 Farmers getting sales tax break on equipment repair labor

Washington Ag May 18, 2007 A legislative priority for agriculture in the recent legislative session was to get the sales tax removed from labor costs for farm equipment and vehicle repair. Heather Hansen, a lobbyist for the Washington Association of Wheat Growers, says the governor signed House Bill 1902 which was sponsored by Representative Bill Grant. Hansen: "Which took the sales tax off of labor and services to repair both farm equipment and farm vehicles and parts for farm vehicles. Last year we got the sales tax off of parts for farm equipment. Farm licensed vehicles were added to that this year and it was extended to also include labor and services, welding, things like that." Hansen says unfortunately the tax break won't become law until July 22nd. But farmers who applied for the exemption on parts last year don't need to reapply with the Department of Revenue to benefit from the removal of the tax on labor. They will automatically get it. Hansen says that for those signing up for the first time for this exemption on parts and labor they now may submit either their Schedule F from their federal income tax or under penalty of perjury just sign a statement certifying they have sales of more than ten thousand dollars in agricultural products annually. I'm Bob Hoff.