Washington Cattlemen's Association
Week 11 Legislative Report
Important Upcoming Legislative Dates
Wednesday, April 2 - Policy Committee Cutoff, Opposite House Tuesday,
April 8 - Fiscal Committee Cutoff, Opposite House Tuesday,
April 8 – Boots on the Hill Wednesday
April 9 – BEEF DAY Wednesday,
April 16 - Opposite House Floor Cutoff Sunday,
April 27 - Sine Die

This past week, lawmakers over in Olympia dropped a pile of budget proposals and tax bills that’ll affect every corner of the state—particularly those that are feeding the country and working the land.

Operating Budget: Washington’s facing a $13 billion budget shortfall over the next four years.
• Senate budget clocks in at $78.5 billion—a $6.5B jump from the last one.
• $1.6B goes to new spending (mostly schools and state worker contracts).
• The rest? It all goes to the rising costs of existing programs.
• To balance the books, they’re looking at $3B in cuts now and $6.5B by 2029. Transportation Budget: Gas tax hikes are on the table—again.
• Senate wants a 6¢ per gallon increase this July, with 2% hikes each year after.
• House says make it 9¢, also tied to inflation.
• All told, they want to raise $1.5–$1.8 billion over six years for road and transit projects. Let’s be honest—every extra cent at the pump hits folks in rural Washington harder than city dwellers.

Revenue Proposals: To plug the hole, Olympia’s looking’ at new taxes and pulling back exemptions, including:
• Wealth Tax – Targeting high-value assets.
• Property Tax Cap Lift – Letting tax collections grow beyond the 1% cap.
• Payroll Tax – Like Seattle’s JumpStart, taxing big employers on payroll size.
• Gas Tax – That 6¢ hike mentioned above.
• Closing 20 Tax Exemptions – Pulling in about $1B over four years. SB 5794 – Tax Preference Bill This bill aims to "clean up" the tax code, but it takes a bite out of ag and local businesses in the process.

What They Say It Does:
• Eliminates “obsolete” preferences.
• Cleans up legal language in tax law.

What It Actually Does - Slippery Slope: This bill sets a precedent—
• RCW 82.04.120 Removes B&O tax preferences for:
• Packing agricultural products.
• Impacts dairy products sold and transported out of state.

RCW 82.16.050 Removes deductions in computing PUT for amounts derived from:
• Transportation of commodities between in-state and out-of-state points where the carrier allows a stop in Washington for storage, manufacturing, or processing before continuing under a through freight rate from origin to destination.
• Transportation of commodities from in-state origins to an export facility on tidewater or its navigable tributaries, for direct shipment by vessel in their original form to interstate or foreign destinations.
• Transporting unprocessed agricultural commodities within the state—from their origin to interim storage facilities—for direct transshipment, without intervening transportation, to tidewater ports for export by vessel in original form, are deductible. If commodities are moved from interim storage to port storage, both facilities must be operated by the same agricultural commodity dealer.

• RCW 82.04.260 Removes B&O tax preferences for:
• International steamship agents, international customs house brokers, international freight forwarders, vessel and/or cargo charter brokers in foreign commerce, and/or international air cargo agents
• Stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce.

• RCW 82.04.447 • Natural or manufactured gas purchased by direct service industrial customers.

Bottom Line: The numbers don’t lie—between higher fuel taxes, rising payroll/property costs, and fewer exemptions, ranchers, farmers and rural businesses are getting squeezed from every angle.

E2SHB 1912 - Farm Fuel ExemptionBill
Thanks to Representative Dent and Governor Ferguson for their steady work on this front. This week, the Senate held a hearing on House Bill 1912, to extend the on-road fuel exemption for agricultural use under the Climate Commitment Act. The bill has earned strong support from a broad coalition of agricultural organizations across Washington. While the Washington Farm Bureau has voiced concerns and proposed an amendment, their position differs from the majority of the ag community on this issue--- See Capital Press article here - Farm Bureau stands alone in opposition. . • As written, HB 1912 continues the exemption for on-road fuel used in agriculture and keeps the current systems in place. It also adds a helpful directory so producers know where they can buy exempt fuel.

• The known Farm Bureau amendment would take a different approach by requiring all gas stations to provide fee-free fuel, regardless of their business model or infrastructure. Supporters of the current bill are concerned with this top-down approach and worry about added bureaucratic costs and compliance challenges, especially for smaller rural gas stations. They believe forcing “mom and pop” to sell something they may not want to sell is unnecessary.

• Capitalism and market forces are driving solutions. Right now, most ranchers and farmers are already getting fee-free fuel, and for those who aren’t, the state's refund program has proven to be a reliable workaround. To be clear, none of this is perfect yet, but the bill is scheduled for a vote in committee on April 1 (seriously). Insiders note on this – Representative Dent and Governor Ferguson are working hard on clarifying the “special fuels” exemption. Everything from propane to kerosene to natural gas. Stay tuned.

SB 5360 – Environmental Crimes: A Dangerous Overreach That Puts Rural Washington in the Crosshairs
Senate Bill 5360—is being pitched as a crackdown on “environmental crimes,” but in reality, it’s a vague and heavy-handed proposal that could turn honest ranchers, farmers, and foresters into criminals for doing their jobs.
Here’s the Problem in Plain Terms:
• It’s Broad and Unclear: The bill lumps a wide range of activity into criminal categories, with unclear definitions about what’s actually illegal. That means your normal day-to-day work— moving cattle, fixing fences near a stream, running irrigation—could get flagged if someone in an office thinks it looks wrong.
• Stiff Penalties, Even for Accidents: They want to bring state penalties in line with federal ones. That includes Class B felonies for certain violations—those carry prison time and serious fines. All it takes is a paperwork mistake or a spill during a storm to get caught in the net.
• Opens the Door to Selective Enforcement: With how vaguely this bill is written, enforcement could be uneven—targeting rural folks and natural resource businesses while letting urban operations slide. We’ve seen it before.
• It Hurts the People Who Actually Work the Land: This isn’t about big corporations dumping waste—it’s the ranchers, loggers, and growers who know the land best and take care of it.
• Risk to Rural Economies: This bill puts a chill on agriculture, forestry, and any work tied to the land. If passed, you’ll see fewer folks willing to invest in rural businesses, and more fear about government coming after routine operations.

Bottom Line: SB 5360 is a classic case of “one-size-fits-all” regulation. It’s meant to sound tough on pollution, but it ends up threatening honest, hardworking folks who raise livestock, grow crops, and manage forests. Rural Washington deserves better than this. Stay tuned as the fight continues. Agriculture is joined by many in the business community in this battle.

SB 5485 – Keeping Livestock Identification Strong
Senate Bill 5485, sponsored by Senators Warnick and Chapman, is a top priority for WCA. This bill helps ensure the WSDA Livestock Identification Program remains solvent and functional—something that benefits every livestock producer in the state.

Why Livestock ID Matters:
• Asset Protection: As you know, livestock is livelihood. Being able to trace, identify, and confirm ownership is critical when animals go missing, are stolen, or cross state lines. The ID program serves as a tool for law enforcement and a safeguard for producers.
• Animal Disease Traceability: In the event of a disease outbreak—like brucellosis, TB, or footand-mouth—quick, accurate traceability can mean the difference between isolated cases and a statewide disaster. The Livestock ID Program keeps track of the transactions and that helps contain risk and protect the broader herd, both locally and nationally. We appreciate the leadership of Representatives Dent and Reeves for backing this bill in the House.

SB 5485 is scheduled for a hearing in the House Appropriations Committee on April 3rd .