SALT Report 2743 – The Washington Department of Revenue issued a special notice regarding the exemptions available for Beekeepers. Due to the passage of Senate Bill 5882, Laws 2013 the Washington business and occupation tax and sales and use tax exemptions for eligible apiarists has been extended until July 1, 2017.
B&O Tax Exemption
This exemption applies to wholesale sales of honey bee products, such as:
- Queen honey bees,
- Packaged honey bees,
- Bees’ wax,
- Propolis, and
- Other substances obtained from honeybees
The B&O tax exemption extends to income received by an eligible apiarist for providing bee pollination services to a farmer. However, income received from brokering bees will remain subject to B&O tax under the service and other activities classification. And, the exemption does not apply to retail sales of honeybee products.
Sales and Use Tax Exemption
This exemption applies to purchases of honeybees and feed by an eligible apiarist. These items must be used in the raising of a bee colony that will make honey products for sale. However, purchases of beehives, hive components, extractors, protective clothing, and beekeeping equipment will remain subject to sales and use tax. To document the exempt purchase, the apiarist must provide the seller with an exemption certificate.
For purposes of the exemption, eligible apiarists are defined as a person who owns or keeps bee colonies; grows, raises, or produces wholesale honey bee products; and registers the hives with the Washington Department of Agriculture.
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