Breeding livestock, cattle, and milk cows

From the 2024 DOR Tax Exemption Study

82.08.0259; 82.12.0261 - Breeding livestock, cattle, and milk cows Description Sales of livestock for breeding purposes and sales of cattle and milk cows used on a farm are exempt from retail sales and use tax. Purpose To support the agricultural industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $11.702 $11.702 $11.702 $11.702 Local Taxes $3.383 $3.383 $3.383 $3.383 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $10.744 $11.702 $11.702 Local Taxes $0.000 $3.101 $3.383 $3.383 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - No growth applied because Washington cow prices and head counts have remained steady for several years. - Local revenue estimates use the rural average local sales and use tax rate of 1.88%. Data Sources - U.S. Department of Agriculture, Agriculture census, statistics, and reports Additional Additional Information Information Category: Agriculture Year Enacted: 1945 Primary Beneficiaries: Livestock breeders, cattle operations, and da