03/07/06 Governor signs diesel tax break bill

Washington Ag March 7, 2006 Farmers waiting to fill up their fuel tanks until state lawmakers provided them with a tax break on farm diesel need wait no longer. Governor Chris Gregoire signed House Bill 2424 into law Monday morning. The measure removes sales and uses taxes from diesel used by farmers for non-highway purposes. Aircraft fuel sold to a farm user is also exempt. During recent floor debate on the bill, Republican Senator Mark Schoesler, said the diesel fuel tax exemption was the issue for agriculture this session. Schoesler: "In the interim when many of us were out about the state listening to the needs of the agricultural community, this was identified as the number one issue whether you farmed in the Skagit Valley, Central Washington or the Palouse." Unlike the gasoline tax which is a flat rate per gallon, the diesel tax was a percentage of price so as diesel went up in price, farmers paid not only more for fuel, but more in taxes. Because House Bill 2424 contained an emergency clause, the tax exemption took effect immediately upon the governor's signature. Another tax break for agriculture that is expected to clear the nearly completed legislative session, is House Bill 2457 which eliminates the sales tax on farm equipment parts. I'm Bob Hoff.