Processing horticultural products

From the 2024 DOR Tax Exemption Study

82.04.4287 - Processing horticultural products Description Farmers may claim a B&O tax deduction for income received for washing, sorting, and packing fresh, perishable horticultural products. Purpose To support the agricultural industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.740 $6.550 $6.360 $6.240 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $6.000 $6.360 $6.240 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 mirrors the gross value-added farm growth rate reflected in the Economic and Revenue Forecast Council's, March 2023 forecast. - 15% of value is the cost to process horticultural products. Data Sources - Economic and Revenue Forecast Council, March 2023 forecast - U.S. Department of Agriculture, Census of agriculture and Washington annual statistical bulletins Additional Additional Information Information Category: Agriculture Year Enacted: 1935 P