Washington House Democrats

Unprocessed milk sales exempted from state tax in bill passed by Legislature

April 6, 2007

OLYMPIA – The state Legislature today approved a bill to exempt the wholesale sales of unprocessed milk from the state business and occupation tax.

Rep. Kelli Linville (D-Bellingham), sponsor of the measure, said the exemption would benefit dairy producers and cooperatives in Whatcom County.

“Dairies and farmer cooperatives such as Dairygold must pay large costs for accounting and reporting income from selling unprocessed milk, in comparison to their small B&O tax liability from these sales,” said Linville. “Extending the same B&O tax exemption to wholesaling of unprocessed milk as other agricultural commodities, such as wheat and oats, is simply fair.”

Dairygold is a nonprofit farmer cooperative that sells unprocessed milk for many farmers in Whatcom County.

The exemption will cost the state an average of $150,000 a year.

The bill (House Bill 1549) now heads to the Governor’s desk.

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Information:

HB 1549: http://apps.leg.wa.gov/billinfo/Summary.aspx?bill=1549&year=2007 

Staff: Larry Clark, 360.786.7214, Clark.Larry@leg.wa.gov