Christmas tree production

From the 2024 DOR Tax Exemption Study

82.04.213; 82.04.050(11)(b) - Christmas tree production Description Items purchased to produce plantation Christmas trees are exempt from sales and use taxes because plantation Christmas trees are included in the definition of agricultural products. Purpose To recognize that production of plantation Christmas trees is similar to the production of other agricultural products. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.783 $0.812 $0.842 $0.873 Local Taxes $0.226 $0.235 $0.243 $0.252 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.774 $0.842 $0.873 Local Taxes $0.000 $0.215 $0.243 $0.252 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth is compound annual growth rate of 7% based on chemical, fertilizer and labor expenditures from U.S. Census of Agriculture and Agrochemical market report. - Christmas trees cost $15.23 in taxable expenditures from planting to harvest. - Approximately 535,000 Christmas trees harvested in Washington. - Local revenue e