Bill Looks To Provide Tax Exemption For Farm Equipment

Proposed legislation in the Washington state Senate would provide a sales and use tax exemption for qualifying farm machinery and equipment purchases.  Under Senate Bill 5092, the equipment must have a minimum price tag of $10,000, while the farmer must have a gross income of less than $2 million.  Jesse Johnson, founder of the Farmer John Coalition, an organization supporting the bill, said SB 5092 would help keep small farms operating in Washington.

“80% of the produce we buy in the United States comes from Mexico, and I was even more shocked to read in the Seattle Times that between 2017-2022 we lost over 3,000 family farms.  And it's just like, wow, this is a very scary thing. We really need to help with family farms in this country and I think Senate Bill 5092 is a great first step.”

Johnson said according to the state Department of Revenue, the passage of SB 5092 would result in a $5 million drop in the state’s budget, which is less than .01% of the state’s overall budget.  He added SB 5092 strikes the right balance between tax relief for Washington’s over 30,000 family farms and fiscal responsibility.

“This proposal only takes .007% of the total state budget. It lowers equipment cost for farmers, improving property for existing farmers and also making it easier for new farmers to get started. It strengthens local food systems. And anytime you can bring, you know, financial easement to farmers, that's always beneficial to them.” 

Johnson is encouraging the Washington farming community to reach out to Senate Ag committee chairman Mike Chapman's office and ask that the legislation move to executive session.  Senator Chapman’s phone number is (360) 786-7646.

Currently, Washington and Hawaii are the only states that do not have a sales tax exemption for ag equipment purchases.

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