Washington – Exemption for Propane and Gas Used in Mint Distillation

SALT Report 2960 – The Washington Department of Revenue issued a special notice regarding the sales and use tax exemption for sales of propane and natural gas to mint growers for use in mint distillation.  The exemption applies to purchases made by farmers who will use the propane or natural gas exclusively for mint distillation.

Buyer’s Requirements

  • Buyers must provide a Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions to the seller at the time of purchase.
  • Buyers must report the amount of sales tax saved as a result of the exemption when filing their E-file returns.

Seller’s Requirements

  • Sellers must obtain a completed Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions from the farmer.
  • Sellers must report their total gross sales on their return, and deduct their exempt sales on the E-file deduction detail page.
  • Sellers must keep the exemption certificate with their business records for the five years following the date of the exempt sale.

For purposes of this exemption, a farmer is defined as any person engaged in the business of growing, raising, or producing any agricultural product to be sold.  However, a farmer does not include a person growing, raising, or producing products for the person’s own consumption; a person selling an animal or animal substance in connection with a stockyard, slaughterhouse, or packinghouse; or a person in the timber business.

The exemption is effective from October 1, 2013, through July 1, 2017.

For Further Information

Washington Department of Revenue – Special Notice

Washington State Legislature – Senate Bill 5882, Laws 2013


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