Seed conditioning

From the 2024 DOR Tax Exemption Study

82.04.120(2)(a) - Seed conditioning Description "To manufacture" excludes seed conditioning for B&O tax purposes. To manufacture seeds means the seeds are used for planting. In addition, wholesale sales to farmers of seed conditioned for use in planting, or conditioning seed owned by others for their planting is exempt from the wholesale B&O tax (RCW 82.04.331). Purpose Encourages seed conditioning businesses to relocate to Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.170 $1.230 $1.290 $1.360 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.130 $1.290 $1.360 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate reflects the compound annual growth of 5% based on historical seed conditioners' wholesale sales. - Conditioned seeds account for one-third of Washington seed conditioner's gross wholesaling income. - There is a separate B&O tax exemption for condit