Livestock feed

From the 2024 DOR Tax Exemption Study

82.08.0296; 82.12.0296 - Livestock feed Description Feed consumed by livestock at public livestock markets is exempt from sales and use taxes. Purpose Feed sold to farmers is already exempt from the sales and use taxes. This provision extends the exemption to feed consumed by livestock (e.g. cattle) while awaiting sale at a livestock market. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.171 $0.177 $0.182 $0.188 Local Taxes $0.050 $0.051 $0.053 $0.054 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.162 $0.182 $0.188 Local Taxes $0.000 $0.430 $0.053 $0.054 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Compound annual growth rate for feed is 3.43%. - Local revenue estimates use the rural average local sales and use tax rate of 1.88%. - Livestock are kept at public markets one day before being sold. Data Sources - U.S. Department of Agriculture, Census of agriculture and farm production expenditures annual summaries - Washington Department of Agriculture