Chicken bedding bought by a farmer

Farmers raising chickens that are sold as agricultural products pay no Washington sales or use tax on shavings, straw, sawdust, shredded paper and similar bedding used to collect and remove chicken manure. It does not matter that the birds are kept mainly for eggs, as long as they are eventually sold.

Who qualifies

• A "farmer": a person in the business of growing, raising or producing an agricultural product to be sold, on its own land or land it has a present right to possess. People raising birds for their own consumption are not farmers.
• The farmer must be raising chickens that are sold as agricultural products.
• WAC 458-20-210, Example 11: a farmer keeps hens for eggs and later sells the spent hens to food processors for soup and stew meat. The bedding qualifies; "It is immaterial that Farmer primarily raises the chickens to produce eggs."

What qualifies

• "Bedding materials": wood shavings, straw, sawdust, shredded paper and other similar materials.
• Used to accumulate and facilitate the removal of chicken manure.

Not covered

• Bedding for chickens that are never sold as agricultural products, such as a backyard flock kept for the owner's own eggs and meat. Pet animals are not agricultural products.
• Bedding for other livestock. The statute is limited to chicken manure.
• Equipment for handling litter, such as poultry house cleaners or litter saver machines. Those fall under the separate livestock nutrient management exemption, with its own eligibility rules.
• Purchases by cannabis growers. Cannabis is not an agricultural product, and the form says cannabis growers cannot use it.

What the buyer gives

Form REV 27 0036 (revision 7/13/23), Section B line 4b: "Bedding materials used to accumulate and facilitate the removal of chicken manure." The instructions add: "The chickens must be raised by a farmer and sold as agricultural products." The signature block asks for Account ID (if applicable), type of entity, name of buyer, farm name, mailing address, authorized signature, date, title and phone number. By signing, the buyer states it qualifies, that it "must keep records to verify the exempt nature of the sale," and that misuse "will result in taxes due, applicable interest, and possible penalties." The form has no field for the seller's name. The buyer ticks single use or blanket; a blanket certificate stays valid while there is at least one sale within 12 months. Cannabis growers and producers cannot use the form.

What the seller keeps

RCW 82.08.920(2): "The seller must retain a copy of the certificate for the seller's files." Form REV 27 0036 says the seller "must retain the original of this certificate for their records" and must not send a copy to the Department, and: "A seller who accepts this completed certificate is relieved of the responsibility to collect retail sales or use tax unless the seller fraudulently fails to collect the tax or solicits the purchaser to participate in unlawfully claiming the exemption." The certificate does not expire while buyer and seller have at least one sale within twelve consecutive months; after a longer gap the seller must obtain a new form. WAC 458-20-210(10): "Without proper documentation, sellers are liable for payment of the retail sales tax on sales claimed as exempt." RCW 82.32.070(1) requires records to be kept for five years, and RCW 82.08.050(7)(a)-(b) gives the 90-day and 120-day windows for obtaining a fully completed certificate.

Common mistakes

• Selling bedding tax-free to a hobby flock owner. The chickens must be sold as agricultural products and the buyer must be a farmer.
• Using the chicken line for horse or cattle bedding. Only bedding for chicken manure is covered.
• Mixing feed and bedding on one ticket without thinking about each. Feed for chickens raised for sale is a wholesale purchase on Section A, not this exemption; bedding is a retail sale exempted by line 4b.

Common questions

Is straw for a laying-hen barn exempt from sales tax in Washington?

Yes, if the straw is used to collect and remove chicken manure, the buyer is a farmer, and the hens are sold as agricultural products at some point, for example to a processor when they stop laying.

Does a broiler grower qualify?

Yes. A farmer raising chickens sold as agricultural products qualifies; meat birds raised for sale meet that test.

Is there use tax if I buy bedding from an out-of-state supplier?

Not on qualifying bedding. RCW 82.12.920 gives the matching use tax exemption and applies the same certificate and record rules.

Sources

• RCW 82.08.920 (1)-(3) exemption, certificate and definitions
• RCW 82.12.920 Matching use tax exemption
• RCW 82.04.213 (1) agricultural product; (3) farmer
• WAC 458-20-210 (2)-(3) farmer and agricultural product; (9)(j) bedding materials and Example 11; (10) certificates
• DOR form REV 27 0036 (7/13/23), Farmer's Certificate for Wholesale Purchases and Sales Tax Exemptions Page 1 line 4b; page 2 signature and seller text; page 4 line 4b instructions
• RCW 82.08.050 (4), (7)(a)-(c) seller records and certificate timing
• RCW 82.32.070 (1) five-year record retention