Farm equipment sold to nonresidents

From the 2024 DOR Tax Exemption Study

82.08.0268 - Farm equipment sold to nonresidents Description Farm machinery sold to nonresidents and immediately transported out of state is exempt from sales taxes. The exemption includes parts and labor for repair services performed on machinery and implements used for farming outside of the state. Purpose To allow Washington implement dealers to effectively compete with dealers in neighboring states which either exempt farm machinery or have a lower (or no) sales tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $10.480 $10.849 $11.231 $11.626 Local Taxes $3.030 $3.136 $3.247 $3.361 Repeal of Repealing this exemption would not increase revenues. Nonresident farmers would exemption likely buy and repair machinery in another state. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions If this exemption is repealed, then nonresident farmers would buy and repair machinery outside the state. Therefore, no revenue impact. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category