07/23/07 Farm equipment repair sales tax exemption in effect

Washington Ag July 23, 2007 That sales tax exemption for repairing qualified farm machinery and equipment or installing exempt parts took effect July 22nd. This is an expansion of the sales tax exemption for qualified replacement parts passed by the legislature last year. In addition to including services in the exemption in the 2007 session, lawmakers also expanded the definition of qualifying farm machinery and equipment to include farm vehicles, which are defined by statute. The sponsor of the legislation, Representative Bill Grant of Walla Walla, says another change will make it easier for those eligible farmers who hadn't signed up for the sales tax exemptions to do so. Grant: "The original people had to send in their tax form from the federal government showing that they were actually a farmer. We changed that now so that you have to sign a sheet saying you are a farmer. And indeed if you are audited and they find you are not then of course you are due for a big fine. But if people are straight with them I think it will work out fine." To be eligible you had to have had gross sales of agricultural products of at least ten-thousand dollars the preceding year. The Department of Revenue says it sent out updated exemption certificates last week to farmers who already possessed a certificate. I'm Bob Hoff.