The Spokesman-Review (Spokane, WA) / April 19, 2001
State lawmakers are pushing bills that could help bail out the struggling farm community
BY: Richard Roesler, Staff writer
In the face of sagging crop prices and a looming drought, the state's embattled farmers, dairies and poultry growers scored a few victories in the statehouse this week.
The state House of Representatives overwhelmingly approved a farm-bill package Tuesday that will provide nearly $7 million in tax relief. It still has to go to the Senate and governor for approval.
"I think it's a good first step," said Rep. Mark Schoesler, R-Ritzville. "The budget doesn't allow us to do as much as we'd like to."
Also Tuesday, the Senate approved a water bill that will make it easier for people to transfer water rights and give local people more control over that process. And the House has passed a bill that allows grain elevators to delay tax payments until they get paid.
"These are all incremental steps that can help relieve the financial pressure on farmers and growers, many of whom, quite frankly, are going broke right now," said Dean Boyer, spokesman for the Washington State Farm Bureau.
To drive that point home, dozens of desperate Wenatchee-area farmers drove to the Seattle waterfront Tuesday. Their message to their upscale urban cousins: Washington agriculture is a large part of the state's economy, including agricultural exporting jobs in Seattle and Tacoma.
"I think that message is starting to be heard," said Boyer.
The agriculture package the House passed includes several items:
* House Bill 1906: Would exempt farm machinery and equipment from the state portion of property tax, now a maximum of $2.83 per $1,000 of market value. The tax break would be phased in, Schoesler said, saving farmers $1.7 million by 2003.
Such breaks are helpful, Boyer said, when even a simple tractor can cost $70,000 or more.
"Most farmers, especially starting out, don't own all their land. But they do have to own machinery," said Schoesler. He and Reps. Don Cox, R-Colfax; Cathy McMorris, R-Colville; and Bob Sump, R-Republic were co-sponsors of the bill.
The measure will help all farmers, regardless of whether they grow apples or raise cattle, McMorris said.
* House Bill 1186: Would eliminate the sales tax on animal drugs, such as antibiotics, vaccinations and parasite control. Washington farmers pay an average of $2,800 each year in taxes on animal health products, according to McMorris.
* House Bill 2138: Would reduce the state business tax on dairies to the same level other food processors pay. It would save the industry nearly $3 million over the next two years. It would also offer $400,000 in tax breaks to poultry farmers buying propane and wood shavings for chicken houses. Sump and Schoesler were cosponsors of the bill.
Sump said dairy farmers now pay three and a half times more in taxes than other agricultural producers.
"They especially need tax relief," he said.
Earlier, the House also passed Schoesler's House Bill 1140, which would allow grain elevators to pay their taxes after they get paid for the grain, instead of having to pay up front.
Agriculture's biggest gain so far, Boyer said, is the water bill, which farmers had been advocating for nearly a decade. A similar bill nearly made it into law last year, only to die in the final moments of the legislative session.
"Because water is such a contentious issue, we would get to the precipice of seeing a bill passed, and then it would die," he said.
Staff writer Richard Roesler can be reached at (360) 664-2598 or by e-mail at srwestside@home.com
This sidebar appeared with the story:
AT A GLANCE
The proposals
These are some of the bills to help farmers:
House Bill 1906: Would exempt farm machinery and equipment from the state portion of property tax.
House Bill 1186: Would eliminate the sales tax on animal drugs, such as antibiotics, vaccinations and parasite control.
House Bill 2138: Would reduce the state business tax on dairies to the level other food processors pay.
Copyright 2001 Spokane Spokesman-Review:
